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Credit Counseling -- Why It Doesn't Work for Most Debtors
"Cut Your Payments in Half!" the headline screams. "Consolidate Your Bills into One Low Monthly Payment!" When you see ads like this, they are often from Credit Counseling firms. In this article, I'll explain the principles behind the Credit...
Debt Relief - Debt Settlement vs Mortgage Refinance
How do you choose between debt settlement and mortgage refinance? What are the differences? Which option is better?
No financial planner would ever recommend a mortgage refinance (one form of debt consolidation) to get out...
Hlw to Double Your Debt Collections
Believe it or not, the success of your attempt to collect a debt is usually decided right at the beginning of your phone call – with the very first thing you say after the other party says hello. Knowing exactly what you are going to say – and...
Home Equity Loans - How To Use Your Home's Equity to Consolidate Debt
If you've got a wallet full of credit cards, and monthly payments on them that total more than 25% of your monthly income, chances are that you've considered debt consolidation loans or some other means of taming your credit card debt. But did you...
The First Step to Becoming Debt Free
So, you want to be debt free do ya?
Well of course you do!
So what's the simplest, biggest positive impact "tip" you can take?
Easy: Stop overspending.
I know, I know... society, our "get it now, pay later" culture, advertisers...
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Individual Voluntary Arrangements (IVA): The New Debt Solution?
The UK is facing a debt crisis fuelled by over spending and over borrowing. In June of this year personal debt in the UK broke through the £1.1 trillion barrier and Britain’s personal debt is reported to be rising by £1 million every 4 minutes.
The rise in the number of people seeking to set up Individual Voluntary Arrangements (IVA), the government’s much touted alternative to bankruptcy, demonstrates both the extent of the problem and the perceived advantages of this new debt solution. But is the Individual Voluntary Arrangement (IVA) really all it’s cracked up to be?
Until very recently when people were overwhelmed by debt, bankruptcy was the only solution. However, the introduction of the Individual Voluntary Arrangement (IVA) by the government has created a new alternative to bankruptcy which is beneficial for both the debtor and the creditor.
The idea behind the introduction of the Individual Voluntary Arrangement (IVA) was to enable people facing financial difficulties to come to a formal agreement with their creditors rather than having to face bankruptcy.
If an Individual Voluntary Arrangements (IVA) is agreed between the debtor and creditor:
• Interest on the loan is frozen
• Legal proceedings are stopped
• The overall debt is reduced
An Individual Voluntary Arrangement is generally seen as a more favorable option than bankruptcy from both the debtor’s and creditor’s perspective.
This is because
there are no fees or legal proceeding involved with an IVA, unlike with bankruptcy and unlike bankruptcy an IVA doesn’t have any stigmas of disqualifications associated with it. Furthermore, from the creditor’s point of view, an Individual Voluntary Arrangement offers a greater repayment of the debt than would otherwise be achieved if the debtor were made bankrupt.
The only real disadvantages of an Individual Voluntary Arrangement (IVA) are that you can’t borrow more money when an IVA is in place (but this is a good thing since more borrowing leads to more debt); an IVA tends to run longer than bankruptcy (usually for 5 years) and it is possible that you might have to release some of the equity in your home (or in another valuable asset) as part of the IVA agreement.
In conclusion, an Individual Voluntary Arrangement (IVA) can be an excellent way of getting to grips with your debt issues by allowing you to only repay what you can afford over an extended period of time whilst avoiding the stigmas and restrictions associated with bankruptcy.
About the Author: http://www.iva-advice.com is a free and impartial UK debt counseling service. Our advisors are specially trained and anything you tell them is kept entirely confidential.
Source: www.isnare.com
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