Everybody has his reasons to take some loan or debt and get financially stable or to cater to some emergency situation, or perhaps for upgrading business. If things go well and debt is repaid easily, it might not be any a headache for the borrower. However, if you fail to pay back the loan in time and the interest over debt starts accumulating and going beyond control, then you will get frustrated and annoyed by the financial shackles.
But hey, there are ways by which you can avoid such a miserable condition and get some life. If you want to get away from the financial barriers and get some relief from your accumulated debt, then avail yourself of some debt consolidation, debt management or an IVA plan. Find out more here.
IVA – An option for debt relief.
It stands for the individual voluntary arrangement where the borrower can negotiate certain terms with the creditors and repay the debts with lower interest rate and lower monthly payment. Basically, the borrower will get a fixed amount of time, usually 6 years, in which he has to pay the amount agreed upon in the IVA contract. After fulfilling all the terms and conditions of IVA, the remaining debt after the IVA time period will be waived off, and the borrower will have a free financial status. The negotiation between creditors and borrower is managed by a licensed and qualified insolvency practitioner who will study your case, your financial situation and then explain it to the creditors to find out a mutually beneficial way for relieving you of your worries. Therefore, after the IVA time period is elapsed, the creditors will not be allowed to pressurize the borrower, no matter whatsoever.
Debt Management Plan – you can opt for this too.
Some people might have a problem with the terms and conditions of IVA or may not be eligible for it. In that case, still, there is hope in the form of debt management plan. The unsecured debt repayments can be handled beautifully by reducing the monthly payments. It is basically an informal debt solution which, like IVA, is a negotiation between creditors and borrower held down by a third party. In the same way, the financial situation and monthly budget of in-debt individual will be explained to the creditors, and certain terms and conditions will be agreed upon which will offer more time for the borrower to pay back the loan.
The creditors might also freeze the interest if possible. However, the monthly payments will be reasonable considering the monthly budget of applicant thoroughly. Moreover, unlike IVA, you have to pay back the full loan amount. The only benefit you can have with a debt management plan is that you can get more time for paying back the loan and perhaps get your interest amount frozen. The debt management plans are flexible too. If your financial situation changes, then the terms can be revised.