When trying to establish which debt solution is the most suitable available to you, it makes sense to examine all the advantages and disadvantages of each solution.
It should be no different with an Individual Voluntary Arrangement (IVA).
So what are the advantages and disadvantages or Pros and Cons of an Individual Voluntary Arrangement (IVA)?
As debt solutions go, an Individual Voluntary Arrangement (IVA) has the ability to ’swing’ the balance of advantage from the creditor to the debtor.
When a person is faced with an overburdening debt problem, all the advantage rests with the creditors. It is they who call the shots.
Creditors can put immense pressure on to a person with threats of legal action and stiff financial penalties for non payment of their debts.
For the debtor, this is a huge disadvantage… because the creditors have control.
An Individual Voluntary Arrangement (IVA) moves the advantage away from the creditor by blocking the creditor’s right to take legal action against the debtor, whilst also stopping the creditors from being able to add financial penalties, such as late payment charges and interest charges.
Once the balance has been redressed, the debtor can concentrate on paying as much as they can afford to the creditors, but no more. This is because the Individual Voluntary Arrangement (IVA) payments are pre-set at an affordable amount for the debtor, and knowing how much you have to pay each month, and knowing you can afford it, is a definite Pros or an advantage of the IVA.
Take this link for a full breakdown of the advantages, or Pros of an Individual Voluntary Arrangement (IVA).
There are always going to be disadvantages, or Cons, involved with any debt solution, and the Individual Voluntary Arrangement (IVA) is no different. However, the disadvantages are few and in most cases do not effect the balance enough to make the Individual Voluntary Arrangement (IVA) less attractive.
Take this link to read a full breakdown of the disadvantages, or Cons of an Individual Voluntary Arrangement (IVA).
To take back control of your life, call My IVA Adviser for free on 0800 088 7503
If you would like to discuss your personal circumstances with one of our specialist Individual Voluntary Arrangement (IVA) advisers, just call My IVA Adviser for free on 0800 088 7503 anytime.
For further information on the advantages and disadvantages, or Pros and Cons of Individual Voluntary Arrangements (IVAs), and other debt help solutions, take this link to read our latest IVA articles.