IVAs on the increase due to credit crunch

The credit crunch means that it is becoming more and more difficult to borrow money on a secured loan basis. For those who want a secured loan to consolidate their current outstanding credit this can prove to be a massive problem.

Consumers who are facing massive difficulty making their monthly payments on credit are therefore looking at other options to ease the financial burden.

Although not perfect for everyone - some are considering entering into an IVA. This is an agreement that is legally binding where you are placed into an agreement (normally for 5 years) to make reduced payments to your creditors. Once 5 years has passed any remaining credit is "written off." Some see this as an "easy option" but people should not enter into an IVA lightly as it can have severe implications on your ability to apply for credit in the future. The process can take a few months to complete but offers some relief, other than bankruptcy.

For more information, see if you are eligible or to speak to someone regarding an IVA please visit www.iva-machine.co.uk