Life... Health... Reviews...

Wednesday, February 27, 2008

Managing debt

Lately I've been hearing a lot of people talk about declaring bankruptcy and, what bothers me about this is, many of them don't seem like they have explored all of their options to pay off the debt. One option is to enlist the help of a debt management company and apply for an IVA.

Are you wondering what an IVA is?

An IVA is a legally binding agreement between you and the companies/creditors you owe money to. Arranging an IVA is a good idea if there seems to be no prospect of paying off all your debts on your own.

A licensed person from the debt management company will make arrangements with all of your creditors for you to pay whatever you can afford over a three- to five-year period. If at least three quarters of your creditors agree to the terms then your debt and any future interest is frozen.

As long as you can make the monthly payments then an IVA just might be the plan for you. For me, the thought of declaring bankruptcy is terrible and I would much rather pursue other options to clearing my debt; an IVA sounds like a smart decision to clearing a mountain of debt.
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