If you are facing difficulties repaying your debt, you may wish to consider applying for an ecured loan IVA. An IVA is a legal document that will help you to regain control of your finances and is usually approved by creditors. This type of IVA can help you to repay your debt while reducing your total amount owed. Unlike a traditional bankruptcy, an IVA does not have a set time limit for repayment. However, it is advisable to contact the IP for guidance before submitting your application for a loan.
When applying for an IVA, it is important to consider how much equity you have in your home. You should avoid borrowing from friends and family, as it may impede your IVA. Additionally, you should avoid showing favouritism to family members as this can irritate your creditors and may even cause you to fail your IVA. In addition, if you own your home, you may be required to remortgage it during the final year of the IVA. The valuation of your property will determine how much equity you have in your property.
The IVA will also allow you to include your unsecured debts. Unsecured debts, on the other hand, are not viewed as priority debts. Therefore, falling behind on them will not result in the same negative consequences as those on priority debts. While falling behind on your unsecured debts won’t put you at risk of losing your home, they will still impact your credit score and cause additional financial problems.
An IVA is not an immediate solution to debt. While you may be able to make reasonable contributions over a period of time, it will require you to meet minimum payments for five years. A secured loan can be cheaper than a remortgage. A secured loan may be an option for those who need large amounts of money to pay for university tuition or home improvements. Besides, a secured loan can also help you consolidate your debt.
In the event that you can’t repay your unsecured debts, an IVA may be an option for you. The government’s Money Helper website offers free advice, based on your circumstances and backed by the government. Once you complete the IVA, your creditors may offer you alternative solutions. If the IVA doesn’t work, you could face bankruptcy and a bad credit score for 6 years. If this happens, you may be required to release the equity in your home.
An IVA can help you pay your debts while saving your home. This type of IVA may help you remortgage your home, allowing you to reduce the time period of your IVA from six to five years. However, if you don’t manage to remortgage your home, the IVA may have to end in failure. You can also check your tenancy agreement and make sure your rent payments are up to date.
Debt Help – How to Apply For an Ecured Loan IVA was first seen on Pathway IT