Mortgages, Remortgages, Secured Loans and Personal Home Loans
38. Debt consolidation options
Individual Voluntary Arrangement (IVA) like other debt consolidation options such as bad credit loans and bad credit mortgages, can seem very complicated at the outset. However you can use the services of an advisor to determine the best course to steer you out of your adverse credit.
A debt advisor will help you ascertain your entire financial situation. They can help you to work out how much you can afford to offer your creditors and if the offer is likely to be accepted. The advisor then drafts up a statement of affairs to be passed to an insolvency practioner.
They get you an Interim Order from the court protecting you from your creditors for seven weeks. Then they produce a formal written proposal that you sign before it is offered to your creditors. If at the following creditors meeting 75% of the value of the debt agree to it then the Individual Voluntary Arrangement (IVA) begins.
If this all sounds a bit to drawn out and formal then other debt consolidation options to try are bad credit mortgages and bad credit loans. These can be a far more flexible way of paying off your adverse credit.
However there are downsides to all types of debt consolidation. The Individual Voluntary Arrangement (IVA) requires you to have at least £15,000 worth of debt and the ability to pay back at least £200 per month for around five years. Bad credit mortgages and bad credit loans may use your property as collateral. This means if you don’t keep up the repayments on your adverse credit you may lose your house.
If you are serious about getting out of debt you must take the bull by the horns and face up to your debts, work out how much you can afford as a regular repayment and keep to it.
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