Debt can affect anyone, at any time. It can be managed in many different ways, but once it becomes unmanageable, it’s time to seek help. That’s where an IVA can be useful. An Individual Voluntary Arrangement works as a legally binding contract between you and your creditors to pay off your debts completely in management monthly instalments over a set period of time. Upon completion, the remainder of your debts will be completely written off. While this is a plan with many advantages, there are also significant consequences that you need to be aware of before making this decision.

So, what are the pros and cons of an IVA? In a nutshell, your agreement will enable you to fully pay off your debts for good over a set period of years, with a percentage of your debt completely written off. However, these agreements can have a negative impact on your credit rating, making future mortgage applications, financial security or accessing any type of credit more difficult. 

Once your plan is complete, you will need to work on improving your credit score in order to be reconsidered for credit, such as mortgages, phone contracts, car sale plans, and more. To learn more about the advantages and disadvantages of this debt management plan, our team has written this short guide for you to explore. Simply keep reading to learn more about the impact an IVA could have on you.