It is indeed very difficult with today’s lifestyles to be debt free. Almost everything that we buy can be bought on credit. Credit cards and loans are becoming the norms today. For those who unfortunately have a big debt problem, there is still a way to solve the problem. Besides the usual debt consolidation loan, I recently came to know about Individual Voluntary Arrangement (IVA).
IVA can be an effective debt solution if you are in serious debt and owe more than £15,000. The Debt Advice Trust, a registered non profit organisation, can provide you with free, expert, honest and impartial advice about IVAs and whether it would be suitable for you.
IVA is a formal and legal agreement with all your creditors with regards to how much you can afford to repay each month based on your income. You then pay the agreed amounts to each creditor for a period of five years, after which the remainder of the debt is written off and you will be debt free.