Friday 26th of June 2009
Individual voluntary arrangements (IVAs) have been listed as one of the main solutions for people struggling with debt by one financial website.
This is Money mentioned IVAs and debt management plans when outlining the options available for those owing substantial amounts of cash to creditors, suggesting that the former is the best of the two for consumers with debts in excess of £15,000.
The website stated: "It gives you agreed and affordable repayments and it means you emerge debt free after five years without facing the trauma of bankruptcy."
It also hinted that it is important to get professional IVA advice, claiming that you do not want to end up with a debt management plan if an IVA is the most suitable option.
Seeking such help from accredited advisers quickly is imperative, it added, as is setting out a "clear strategy" for becoming debt free.
Working out exactly how much money is owed and to who is the first step someone should take to get out of debt, according to This is Money’s ten-step guide.
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- Lenders 'working with borrowers' to minimise repossessions
