Can I use an IVA to resolve my credit card debt?

Credit cards offer many benefits to the people that use them however they can quickly become a burden if it becomes difficult to meet repayments. When you can no longer meet minimum monthly payments, debts can quickly spiral out of control to an unmanageable level.

Dependent on the interest rate attached to your card and the amount you have borrowed, the money you owe can quickly add up to eye watering levels. When debts become difficult to deal with, it is important that you obtain advice from a licensed professional as soon as possible.

At Personal Debt Solutions, we can help by offering a range of solutions to those who need help with their debts. One of the solutions we offer to those who come to us for help and advice is an individual voluntary arrangement (IVA).

An IVA is a useful tool to help those struggling with debt to deal with their money problems by paying back all their unsecured debts with monthly payments they can afford. But why would using an IVA be ideal for credit card debts in particular?

• Firstly, all interest payable on your debt and charges related to your credit card will be frozen.
• It stops any legal pressure from the credit card company against you, providing you with the safety and reassurance you need.
• Lenders and credit card companies usually look on IVAs more favourably than bankruptcy as they are likely to get some of the money they are owed back from you.
• In most circumstances, once you get to the end of the five year IVA term, any remaining debt(s) will be written off. This means that after five years, it is very likely you will be free of your credit card debt.

You should be aware that during and after an IVA, it may be more difficult for you to obtain credit as this will stay on your credit rating for a minimum of six years.

So what do you need to do in order to get yourself started in the IVA process to deal with your credit card debts?

It’s simple, pick up the phone and call us. You’ll be able to speak to one of our friendly professional advisers who will discuss the best options available to you and answer any concerns you may have.

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