If you’re struggling to make your
credit card repayments and your accounts are being turned down to collection
agencies, you can use an IVA or an Individual Voluntary Agreement to reduce your
debt burden. Through an IVA, you can easily get your creditors accept an
alternative repayment plan through which repaying your credit card obligations
becomes much easier. This is a government initiative where you require showing
your financial hardship in order to qualify for such an agreement. Just as you
seek debt settlement help
and write off a portion of your debts, similarly, through an Individual Voluntary
Agreement, you’ll be able to repay an amount that is much less than what you
owed to your creditors. Have a look at the ways in which an IVA can empower you
with financial freedom.

 

It is a private agreement

An individual voluntary agreement is an agreement between
you and your creditors and is totally a private deal. Though a copy of your
agreement is required to be sent to the local County Court, there will be no
formal newspaper notification like a personal bankruptcy. As most debtors hesitate
to reveal their personal financial condition to unknown people, they can
secretly settle their debts without letting people know about it.

 

Reduction in the principal amount

The principal amount that you owe to your creditors will be
reduced drastically as the debt consultant will negotiate with your creditors
to reduce the debt burden. As it is very difficult for the debtors to repay the
entire amount accumulated on their credit cards, the individual voluntary
agreement allows the debtors to pay off their debts in a reduced amount.

 

Lowered interest rates

The interest rates on your multiple credit card accounts
will be lowered and you can repay your creditors in lower monthly payments. As
your debt consultant negotiates with your creditors, you can repay your debts
affordably without causing much strain on your wallet.

Valid option to avoid bankruptcy

The IVA is a valid option to avoid filing bankruptcy. As
you incur huge amount of credit card debts and see that you cannot repay your
monthly payments, you may be tempted to file bankruptcy so that you can relieve
yourself from all debt obligations. But by entering into an agreement with your
creditor, you can restructure your repayment plan so that you find it easier to
repay the loan.