Debt End

An IVA is an Individual Voluntary Agreement between an individual and their creditors. It is sometimes used as an alternative to bankruptcy, but is not advised for all situations. This contract will stop your debts from accruing further interest or fees and a suitable payment arrangement is made with your creditors. Normally this is done over the course of about five years, and at the end of this time, the balances are written off by the creditors.

This is not as damaging to your credit as bankruptcy, but it will affect it. However, you will probably be able to save your house and your car, instead of losing them to repossession.

There are tons of ads that say IVA’s are extremely bad for anyone’s financial situation. While this may be true for some people, it is not the norm. There are a lot of companies that are now offering IVA advice, but for a very high fee. Sometime, the given advice is not the best either. These companies are being closely watched for improprieties by the government to limit the number of clients that have been hurt financially through these businesses.

This type of debt resolution is not right for everyone. It is estimated that only three percent of people should use this method for correctly problem debt. There are some free services available to help consumers determine if this avenue is right for them. The National Debtline and the Consumer Credit Counseling Services are two of the best for obtaining free help.

Before trusting you finances with just anyone off of the television, consider contacting on the above mentioned free services first. They are trained to know when IVA’s are helpful and when they are not.

If you are not a good candidate for this type of solution, you need to avoid it. These programs, while beneficial to some, can cause even further financial strain on others. Take the time to research the program thoroughly before making your decision.