Mortgages, Remortgages, Secured Loans and Personal Home Loans
29. Individual Voluntary Arrangements
Do you know what Individual Voluntary Arrangements (IVA), bad credit loans, debt consolidation and bad credit mortgages are? You may have tried to apply for a loan or mortgage recently and got turned down because you were told you had adverse credit.
This is tied to what is known as your credit rating. This tells potential lenders how financially reliable you are. If you have missed payments in the past or had financial troubles you will get a bad credit rating. Even if your credit is good but you move to an address with a bad credit rating your credit will be affected.
The good news is you can get products designed particularly for people like you with adverse credit, who need to sort themselves out. A good way to do this is through debt consolidation. This means giving all your debts to one lender. This can help you get a handle on how much you owe.
There are many products available out there. The main ones you should consider are bad credit loans, bad credit mortgages and maybe trying for an Individual Voluntary Arrangement (IVA). None of these products magically make your debt disappear but they all can help manage your debt.
Adverse credit does not have to mean the end of credit. Debt consolidation through a bad credit loan or a bad credit mortgage may be right for you. By working through these deals and regularly making your repayments you are actively repairing your debt. However there are pitfalls to avoid including risking losing your house.
Individual Voluntary Arrangement (IVA) will protect your equity if you keep to the prearranged and well thought out repayment plan. It does require your debt and monthly repayments to be substantial but at the end of the agreed period the rest of your debt is written off.
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