If you are unable to make regular payments on your loan, you may be considering applying for an ecured loan IVA. Although it is not recommended for people who are unable to make regular payments on their other loans, it is an excellent option if you are having trouble making regular payments. You will need to pay a higher interest rate for this loan, but it is better than the alternative of defaulting on your loan. Besides, you can use the equity in your house to fund the loan.
An ecured loan IVA is a legal debt solution that will allow you to make minimum payments after paying your essential living expenses. You will need a basic bank account and good IP to obtain the best deal. Usually, the process can take less than one minute and will require only a simple application. Then, you will receive a decision from your creditor. You can then pay the loan and your creditors.
While an ecured loan IVA is not suitable for everyone, it may be a good option if you cannot keep your home due to your current financial situation. If you own a property, an ecured loan allows you to continue paying on your existing debts while preserving your home. It is important to note that there are disadvantages to an ecured loan, so it is crucial to discuss the benefits and disadvantages with a qualified debt management professional.
When you opt for a secured loan IVA, you can ensure your creditors do not repossess your property. They cannot use the Consumer Credit Act to pursue you for debts owed, but they can still take legal action to collect their money. However, in some cases, your IVA nominee will be able to obtain an Interim Order that will stop creditors from taking any legal action against you until the creditors have met.