As part of its series of articles on debt management problems, MoneyHighStreet.com has indicated the ways in which individual voluntary agreements (IVAs) can help those struggling to control their debts.
IVAs, which are only available to those owing over £15,000 to three or more creditors, can be beneficial as up to 75 per cent of debt can be essentially “written off”, with a specialist helping people to calculate what they can afford to repay.
The publication further stated that the decision to enter into an IVA is not made public, allowing those who opt for the service to do so discreetly, unlike bankruptcy proceedings.
Borrowers are also able to open current accounts – although overdrafts are not permitted – and credit ratings can be repaired through the use of such a scheme.
Earlier this month, James Jones of Experian was quoted by the Daily Mail as saying that IVAs can be beneficial to consumers as they could avoid black marks on their records.
By Sarah Adie