Debt is a big problem in the UK at the moment. The financial crisis, combined with the rising cost of living and high unemployment have led to more and more people getting into debt just so they can live and this has led to more people than ever being unable to manage their debts. Being unable to manage debts effectively can be extremely worrying and very stressful for anyone. For those who are finding it impossible to pay their debts, it is really tough but they should not despair as writing off debt may be a possibility for them.
Of course, writing off debt is not a simple process and people can’t just write off their debt because they are unable to pay but there are certain circumstances where people can take steps, such as getting an IVA, to write off their debt.
If you have a lot of debt and you really cannot afford to pay it, then an IVA or Individual Voluntary Agreement, to give it its full name, could help you with writing off your debt. It is not suitable for all types of debt. You can’t, for instance, write off your mortgage with an IVA but, if you have any unsecured debts such as credit cards, store credit, overdrafts or personal loans, then you may well stand a chance in writing it off.
Many people assume that an IVA will offer them a quick fix, writing off their debt immediately, so they can carry on with a clean slate but this is really not the case. When you take out an IVA, you are still expected to pay as much as you can towards your debt for a period of five years. You may even have to remortgage your home to release equity. However, interest charges will be frozen in this period and, once you have successfully completed an IVA, the remainder of your debt will be written off, so it is well worth applying for.
You should always go through a reputable debt management when seeking an IVA as they are best placed to help you through the process.