At the time of acquiring a loan, you don’t foresee the amount of frustration and irritation that comes when your monthly budget is cut, and you have to pay immense interest over the acquired loan. Now, if you fail to pay back the loan at a time, then you are up for a great financial disappointment. The penalties associated might go beyond your control.
If you are struggling in keeping up the monthly payments and want some help for the management of your debts so that you can pay it back at an affordable rate, then you can do so easily by availing yourself of different plans like IVA, debt management or debt consolidation or bankruptcy service. The creditfix debt management help explains a lot in this regard.
Contacting insolvency practitioner for IVA
In case you want to see whether you are eligible for IVA, you will contact an insolvency practitioner who will take into account your monthly budget and overall financial condition and then decide whether to approve or disapprove your IVA application. If you are in luck and are truly eligible, then you are up for a great relief because the insolvency practitioner will talk to your creditors and convince them for an agreement that simplifies your monthly payments and helps you become financially stable. Now, when your monthly payments are reduced, you become financially more flexible. The period of IVA is usually six years.
In the IVA period, you have to fulfill all the said terms and conditions of the agreement and keep on paying all the monthly payments as agreed. After the time period of IVA is over and if you have fulfilled all the terms, then the remaining balance will be written off, and you will become free of debts. This also means that the creditors will be legally forbidden to talk to you about your debts or pressurize you for paying back the amount in any case.
Alternative for IVA – the debt management plan.
In case there is any ambiguity in your IVA application, and it gets turned down. Don’t lose hope because still there are many other options that you can consider. You can go for the bankruptcy service, or you can also avail yourself of the debt management plan. It is a perfect way for struggling borrowers to get some relief.
You will get more time for paying off your debt, and in the scenario, if creditors agree, you might have your interest frozen that will put off a huge burden from over your head. For this case, you might want to hire a professional and reputed debt management company so that the company can bring your creditors to agreeing on terms that benefit the borrower and relieves him off his debts. Now, the terms and conditions are very flexible in the debt management plan. So, if you see that you can pay back the loan quickly, then you might ask for a revision in terms.