If you want to reduce your debts with an ecured loan IVA, you must first find out if you are eligible for the scheme. If you are, then you can use an IP to find an IVA in your area. It will explain the benefits and disadvantages of an IVA and help you determine whether it is suitable for your circumstances. Alternatively, you can contact the National Debtline for free advice.
A specialised lender is best suited to bad credit borrowers as they have access to the whole market. You should also consider settling your IVA early to avoid the limitations it imposes. An IVA remains on your credit file for six years, which means that you must be willing to make regular, reasonable contributions over a period of five years. A successful IVA will also help you rebuild your credit rating. But remember to speak to your IP first. Failure to do so could cause you to file for bankruptcy or lose your home.
If you have a short term loan, it will likely have very high interest rates. It will usually also be secured against a piece of property. A typical example would be a car loan, which is secured against an asset you bought with the money. It could be a motorbike or a caravan. However, if you are facing a large number of unsecured loans, it may be best to consider an IVA. You may be able to repay the debt by paying off the unsecured loan and keep your property.
For a secured loan IVA to be successful, you will need to secure a mortgage of no more than 85% of the value of your property. This will ensure that you retain as much equity as possible, which can be quite difficult if you have little or no equity in your property. The IVA supervisor will determine how much money a reputable lender is willing to lend you and how much you can afford to pay.
For a homeowner, an IVA may be a better solution than filing for bankruptcy. An IVA will protect essential assets from unsecured creditors while you try to get back on your feet. You can keep your home even after bankruptcy as long as you can make your secured payments. But before you start releasing the equity in your home, make sure you check your tenancy agreement. If your rent is current, the landlord will probably not want you to leave.
Although secured loan IVA is not suitable for everyone, if your debts are relatively small and your debts are low, then it could be the perfect alternative to bankruptcy or insolvency. An experienced debt professional can help you determine if an IVA is right for you. They will be able to explain the pros and cons of this solution and ensure you get back on your feet and make manageable repayments. IVA is a viable option for many people.