Personal Debt | Debt Consolidation
With our Debt Advice, an IVA could help you regain control of your unsecured personal debt, a form of debt consolidation. Debt Consolidation is basically entails the individual taking out one specific loan to pay off a number of others.
You will make one monthly payment, which is based on what you can realistically afford after you have paid all of your household and travel commitments.
Your IVA will stop chasing letters from creditors, any further action such as County Court Judgments, and the possibility of charging orders.
Your IVA will usually last 5 years. During this time you will pay your monthly payment to the supervisor who will then distribute the funds to creditors. There is no additional cost to your monthly payment as with Debt Management plans.
Your home is safe and protected in an IVA. Creditors may ask for some equity release at the end of the IVA depending on how much equity there is in the property.
So how do you get control?
When you are analysing your personal debt and looking to gain control of it, one of the easiest ways is for you to contact us and have an informal conversation about your current financial situation, we will go through many options that are available, one of which may be debt consolidation. Sometimes an informal chat can help you put things in perspective and ease some of your worries and concerns.
If you have not reached the stage where you feel confident enough to speak to someone, let alone a stranger, please read on. To enable us to help you we will require some information to assess your current situation and give you the best advice.
To help you to do a very basic calculation to assess your finances and work out how much your personal debt has escalated to, we have put together a household budget form for you to complete, along with a creditors list.
Once you have completed the forms you will be able to see the disposable income you may have for an IVA. You need to be aware that creditors do have upper limits for monthly expenditure, which they will expect you to adhere to.
If there are specific reasons why your expenses are higher than these figures, we can explain this to creditors so that they can understand your circumstances.
So, now you know what you have left at the end of each month. At this point you may find it interesting to add up what you should be paying to creditors each month. If the amount due to creditors each month is more than the figure you have left at the bottom of the household budget form, you have a problem that needs addressing with some urgency. Maybe, without even realising it, you have been borrowing money to pay your debts, or using credit to bay for basic costs such as groceries, electricity or rent.
