Finance Agreements

An Individual Voluntary Agreement, or an IVA for short, is a legal agreement that, for people owing 15,000 or more, can write off up to 75% of the debt. Seen as an alternative to bankruptcy, an Individual Voluntary Agreement lets the person in debt, the debtor, pay off the remaining debt in amounts that still allow them to keep up with their mortgage, food, bills etc.

An IVA is a legal process which takes place between the person in debt and a Licensed Insolvency Practitioner. Apart from the benefit of having up to 75% of the debt wiped off, an IVA sets up an agreement between the Licensed Insolvency Practitioner and the creditors to whom the money is owed. This means goodbye to creditor’s demanding money and contacting the person in debt directly.

For the creditor who is owed money, an IVA is often the best solution because chasing money is a costly process. At least with an IVA they’re aware they could get more money back than if the debtor declares bankruptcy. Because an IVA is approved by the Licensed Insolvency Practitioner as well as the creditor, the creditor has already decided that an IVA is the best way in which they are going to receive some of their money back.

IVAs are flexible agreements based on the every debtor’s individual financial circumstances, and setting up an IVA only takes between 6-8 weeks, with the debt amount usually repaid between 3-5 years. IVAs are popular with debtors who opt to protect their assets as much as possible, as these assets may be at a higher risk if the debtor declared bankruptcy instead.

There are Licensed Insolvency Practitioners who specialise in IVAs so it is worth considering or learning more about IVAs before opting to declare bankruptcy. But remember, as with all financial repayment processes, there are advantages and disadvantages, so talk to a professional before choosing.

Find out what is an IVA today

Personal debt is something that is, generally, quite easy to get into. National statistics show that, in combined personal debt, the UK is almost 1.5bn in the red.

To avoid getting into debt, you can easily do this by adopting a sensible approach to spending. Avoiding using your credit cards and making unnecessary impulse buys, and try carrying only the cash you need with you each day. If you spend a 5 or 10 at lunch each day, try bringing your won lunch to work. You can make your money work for you by shopping around, using loyalty cards and looking out for special offers.

If you’re already into debt, the most important thing is not to make the situation worse. Credit cards, fixed term overdrafts, and even debt consolidation loans are not the way to go – most will involve high interest rates and fees that will only add to your problems later on.

Manage your current debt: You will often see advertisements for debt consolidation loans for people with a bad credit history, but more often than not, these involve high interest rates that lead to more debt. Many lenders will negotiate with you if you are running into trouble, so always check directly with them first, and never ignore arrears letters – the problem won’t go away. If need be, seek impartial advice from the Citizens Advice Bureau or the Consumer Credit Counselling Service.

If your financial situation is worsening, seek advice from the Citizens Advice Bureau or the Consumer Credit Counselling Service. Both offer free, impartial advice and they won’t try and sell you any ‘debt solutions’.

Got a skill? Use it! Doing part time or weekend work can bring in a little extra money each month, so whether it’s teaching music, languages, cutting hair, or even doing weekend or evening work in a bar/shop, you can always bring in a little extra cash.

Find out more about debt management. Find out more about debt management.

We are a nation of home-lovers if the old phrase ‘an Englishman’s home is his castle’ is to be believed. However, when we decorate our ‘castles’, rather than taking the safe option and using professionals, many people choose to do the work themselves. It’s obviously much more cost-effective to do work ourselves, rather than paying the wages of professional decorators for days or even weeks.

Many people also find that they enjoy decorating themselves. Decorating your own home has almost become a rite of passage for many, and a great way of making our homes our own. There’s a natural desire in many of us to put our own stamp on our homes. It’s a way of affirming our own identity, and of declaring to visitors as soon as they walk in the door ‘this is me’.

Of course, there’s no reason a decorator can’t be instructed to paint to our instructions, but there’s something about seeing the job through yourself that’s uniquely satisfying. Choosing paints and wallpapers, planning colour schemes and paint effects, and working on themes: we have all become our own interior designers, often inspired by the property makeover shows that have burgeoned in recent years.

However, it can be a good idea to get some help sometimes. Although decorating can be simple, there aren’t many DIYers who can do it to the same standards as a professional. Although some have a higher level of natural skill than others, some struggle. If you can find the money, then paying for a high quality finish and fast work can be worthwhile.

If you’re able to do an effective DIY decorating job, and have the time to invest in it, it can be a uniquely satisfying experience to know you’ve revamped your own home. If you’re short on time or skill, then it can be worth splashing out to get the pros in rather than live with a badly-executed job.

Paint Stinks? Find out more about Breathe Easy paints.