If you are struggling with severe debt problems – usually £15,000 or more – sometimes an IVA (Individual Voluntary Arrangement) could be the right solution for you. An IVA involves making reduced monthly debt repayments to your creditors, this will be based on your available income, usually for five years. Once the IVA is finished, your remaining debt will be considered settled.

Who is an IVA best for?

An IVA is best suited to people with very large debt problem that will not be repay within a realistic timescale. They are a legally-binding debt solution, an IVA requires full commitment to repaying your debts. Payments will be based on how much you can afford after paying your expenses, so you will be left with no disposable income for the duration of the IVA.

Should I consider other debt advice?

Before choosing any debt solution, you should always speak to an expert debt adviser. Just because you have debts of £15,000 or more does not necessarily mean that an IVA is the most appropriate debt consolidation – it really depends on your circumstances. So long as you can afford to repay the debts in a realistic amount of time, another debt solution, such as debt consolidation or a debt advice plan, might be your best option.