The majority of people in the UK are in some sort of debt. Whether it's student loans, car finance or outstanding credit card bills, most of us owe a few quid here or there.
It's usually only when these debts start getting out of control and affecting other areas of our life that we sit up and take notice.
Even if it has got to this stage and you feel like your mountain of debt is taking over your life, fear not because there is help available.
If it's got to the point where you're thinking that bankruptcy might be the only option available, it might be better to consider an IVA. This stands for Individual Voluntary Arrangement and it's a formal debt repayment agreement between yourself and your creditors in which you agree to pay off a percentage of your debts over a certain amount of time.
It's a legally binding agreement so it has to be set up by a licensed professional called an Insolvency Practitioner, but they'll be completely independent so you can be sure that they'll have your best interests at heart.
This Insolvency Practitioner will discuss your finances with you in detail. They'll establish how much you owe, and to who, and they'll use all of their extensive experience to arrange a plan that will tackle your debts.
You'll only be paying back what you can afford and the beauty of an IVA is that you'll probably never have to pay back all the money you owe; sometimes up to 75% of your debt can be written off. This is because your creditors will often agree to receive a reduced amount of money because they'd rather that than get nothing at all.
When your IVA is implemented, all your interest and debt charges will be frozen and your creditors will be banned from making further demands for money. Throughout the course of the plan, your financial circumstances will be regularly reviewed to ensure that you're still able to afford the payments.
Upon completion of the payments initially set out in your IVA plan - even if all your initial debts still haven't been paid off - you'll be considered debt free and you'll hear no more from your creditors.
An IVA plan could be a great alternative to bankruptcy and the future problems that it can cause. Here at Trapped.co.uk we've many years experience of helping people in financial trouble get an IVA, and we can do the same for you too.
We work with some of the UK's leading IVA providers and we won't charge you a thing to help you. So get in touch today to start tackling your debt problems - the light at the end of the tunnel's not far away.
