5 Key Questions for those in debt
Get Help With Debt advisor Craig King gives his thoughts on the five most common questions people have when they are considering addressing their debts using an IVA.
In short YES – An IVA is not always the answer and our regulation precludes us from recommending an unsuitable solution. In fact we sign-post clients for alternative services, where applicable, every single day.
An IVA works where repaying your unsecured debts in full is unaffordable. Interest stops, and you address your debts with one affordable monthly payment.
This process effects your credit rating negatively however often saves clients £10,000s in unaffordable capital and interest payments.
During your call with our debt advisers they’ll work through this with you to ensure you are comfortable with the process, costs and credit impact.
The good news is we are working with clients every day to assist them in repairing their credit after a debt settlement.
Debt Adviser Craig King said: “When people contact us one of the first questions they ask is how will each debt solution affect my credit rating. I take them through each option and recommend the most suitable course of action.
“Once we arrange an IVA for a client we then review it with them annually and always seek to assist them in ending the settlement plan early if it is realistic and affordable to do so.
“Where debt is genuinely unaffordable even missing a payment on a credit card will have an impact on your score of up to minus 130 points so an IVA can be used to fix all debt problems in one go.
“IVAs can be arranged as a lump sum settlement or are paid over 5 – 6 years depending on the clients circumstances and any assistance they have from friends or family. The good news is that if you have been struggling with unaffordable debt for a long time, there is light at the end of the tunnel. A credit score will begin to repair very quickly once an IVA is completed and those seeking new finance or mortgages will have assistance from our sister company CDF Financial.
Will my home be safe?
“The answer to this is always yes. Whether you rent or own your home an IVA ring-fences your ability to stay exactly where you are.
“A lot of our clients are homeowners and come to us because they have unaffordable debts such as credit cards and loans and want to ensure they can always afford to pay their mortgage. This is exactly the right thing to do and all mortgage payments, rates, insurances etc are protected from creditors with an IVA.
Why will the creditors write-off so much debt?
“Pure and simply there is legislation in place to ensure that debts such as credit cards, loans and store cards cannot take priority over essential outgoings like mortgage payments, rates, groceries, running your car, paying your heat and electricity.
“We work with you to ensure that you are only ever paying back an amount that you can afford. It’s unusual for creditors to refuse a properly constructed and fair IVA settlement. The vast majority of IVAs we propose are accepted and we don’t charge any upfront fees so there really is nothing to lose to find out if you fit for this type of arrangement.
What happens if my circumstances change within the five years of my IVA?
“Our approach is to firstly to get a really good understanding of our clients’ circumstances plus any changes that might occur in the future. We also build in some variance into our clients’ IVAs in case income reduces, household expenditure increases or some other unknown change occurs.
“I can proudly state that very few our IVAs ever fail; we take the time to make sure it’s the right solution in the first place, and work with our clients if their circumstances change later down the line.
Can I keep my car?
“The short answer is yes providing the equity in the vehicle is below a certain threshold. If not, we can often work out an arrangement where a little bit more is paid into the IVA so clients can keen their car, whether its on HP or not. Clients can also change their car before during or after an IVA as well if required.
Throughout their collective careers to date our team have helped over 30,000 people through IVAs and Get Help With Debt typically achieves up to 90% debt write-offs for their clients.
We are authorised and regulated by the Financial Conduct Authority and only ever follow strict advice guidelines. If another solution is better for you, we’ll advise you of it during your free consultation If you are worried about the cost and affordability of repaying all of your debts then call to arrange a no obligation chat with one of our experienced advisors today on 02890 393626.