IVA’s becoming ‘tougher to arrange’
People struggling with debt could soon find it harder to arrange an Individual Voluntary Agreement (IVA), it was suggested today.
An IVA is a formal agreement with creditors that allows the person in debt to make reduced repayments and usually involves a portion of the money owed being written off.
Derek Oakley, insolvency director at independent advice service Debt Free Direct, said an IVA is often the best option for people struggling with their finances, but that lenders are becoming less willing to co-operate.
"What's much harder now is the attitude of lenders who are not as helpful in agreeing IVA deals and are becoming much, much tougher and are denying access to an IVA," said Mr Oakley.
Sean Gardner, chief executive of personal finance website MoneyExpert.com, recently advised borrowers worried about the amount of money they owe that consolidation loans and loans secured against property can be useful tools in controlling debt.
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