Choose to go with the best debt management advisory company for an effective and complete solution for your problem
With increasing amounts of debt and diminishing sources of funds to pay them off, it can often seem like a gigantic task to fend off relentless creditors and try to find a way to reduce the huge interest payment which keeps increasing with each passing day. If you are facing such a situation and are unable to manage your financial affairs, it is time for you to seek the advice of a debt help company whose team of professionals will give you an expert analysis of your debt situation and help you find the most plausible solution for managing it.
Why you should go to a debt help company
The team of advisors at a debt help company are professionals in the field who have years of experience in dealing with different kind of debt problems. A good debt help company will always be able to give you the right advise on how you can pay back your debt without compromising on your living standards.
Apart from good sound advise on general debt management problems, a debt help company will also be able to lay down before you the several debt management products that may be available for you. There are a wide variety of debt management products available, each of which is suited for a different kind of debt scenario. Before taking your pick, it is always best to consult a debt management professional on the issue.
Apart from giving expert solutions to debt management problems, another big advantage of approaching a debt help company is that they would more often than not take up the responsibility of dealing with your creditors on your behalf. For example, if you choose to opt for a debt management instrument like an Individual Voluntary Agreement or a Scottish Trust Deed, the obligation of informing the creditors of the terms of the instrument would be on the debt help advisors. In fact, this is one of the main reasons why individuals choose debt management instruments as it is a big relief simply to be able to live your life at peace without facing the relentless demands from creditors.
When is an Individual Voluntary Arrangement advisable
Individual Voluntary Arrangement is a special type of debt management instrument which is available only to the residents of England, Wales and Northern Island. Although there is no formal eligibility criteria for entering into an Individual Voluntary Arrangement, generally it is preferred by those who have a huge amount to repay as debt especially if it exceeds 5,000 Pounds.
An Individual Voluntary Arrangement or IVA is quite simple to understand. You can log in to any IVA website to read up on the basic features and pros and cons of an IVA. Every IVA comes with a major advantage such that it gives a relief to the debtor from paying the entire debt amount at one go. The arrangement focuses on making sure that the debtor gets enough time to repay the debt according to his earning capacity while keeping aside enough money for his living expenses. Entering into an IVA makes sure that the debtor also does not have to sell his assets like house, car etc. Through an IVA, the debtor pays only a fixed instalment towards payment of his debt, while the rate of interest is reduced and some part of the debt may even be written off by the creditors.
Entering into an IVA is advisable only when the amount of debt is quite high and the debtor is unable to manage an equitable payment of the principal debt as well as interest. The second factor to take into consideration is the number of creditors to whom debt is owed. If there is only one creditor, there are other debt management solutions. However, if there are 3-4 or more creditors, it becomes easier to pay a monthly instalment to your Insolvency Practitioner under an IVA who would then proportionately divide the amount among the various creditors. Your source of income, job stability and number of dependants you have to provide for also play a major role in deciding your suitability for an IVA.