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How Can You Be Certain That IVA Help Is Right for You?

One of the effective ways of dealing with you debts is called as an Individual Voluntary Arrangement (IVA). It is actually an agreement with your creditor for making your monthly repayment more affordable. When an individual goes for IVA debt management program it will help him/her as his repayments will be tailored according to the current financial status he/she possess. Moreover, the money you have to pay back will be paid off over a specific period of time.

Now the question is how you can be so certain that the help taken from IVA will be right for you. When an individual seeks IVA debt management program’s advice he/she will find out that it is yet another option for you to manage your debts. The type of repayment program to opt will depend on you own financial status. It will work best for an individual who has got sufficient amount of money every month for repayment against what you owe and/or any asset that could be used.

Now, to qualify for an IVA there are some other factors that need to be taken into account before availing it. First of all, you must have three outstanding debts that total £15,000 or more. Secondly, you should owe these amounts to two or more different creditors. Thirdly, one should be in a condition to pay around 20 pence for every £1 you owe.

Individual Voluntary Arrangement is legal bindings in which you are agreeing to pay an amount off your debt with in a specific period. If there would be any unpaid amounts that were included in IVA they will be written at the very end of that period. It depends on the individual’s priorities and circumstances that he/she may pay in monthly installments for a specified number of years or can include a lump sum repayment.

Another question is that what types of debts are included in Individual Voluntary Arrangement?

Individual Voluntary Arrangement often considers unsecured debts that include: credit cards, catalogs,personal loans, overdrafts and store cards etc.  It is possible that some priority debts can also be included in an IVA like council tax arrears, fuel debts and taxes but it would be dependent on the agreement by the creditor.

There are some debts which cannot be included in this very arrangement. They include mortgage and secured loan arrears,maintenance or maintenance arrears,student loans, Child Support Agency arrears,rent arrears andmagistrates’ court fines etc. This should also be kept in mind that when you will enter into anIndividual Voluntary Arrangement you will have to disclose all the details related to your assets and possessions by law.

These payment agreements in which you are entering you have to set up by an Insolvency Practitioner(IP) who will usually be qualified accountant or solicitor. IP has the authority to set up an Individual Voluntary Arrangement on the client’s behalf and will apply in the courts for temporary order. This is helpful because it will stop your creditors to take you to the courts in the meantime.

A number of benefits are also provided byIndividual Voluntary Arrangements. Firstly, your repayments will be continued till a specified agreed date and usually you will be ending up at repaying less than you owe. Moreover, you would not be having the same limitations as you would be having in case if you are declared bankrupt. Another advantage of IVA is that your property or house etc. will not be directly/automatically seized from you but you need to agree to re-mortgage for paying some of the debts.

So, Individual Voluntary Agreement is no doubt a very helpful as well as convenient source of the individuals for management of their debt however, everyone needs to consider the pros and cons and one’s own capacity etc. in order to avoid future issues and stress. As the circumstances differ from person to person so one should not just opt IVA or any other such agreement because its attractive and it looks good but he have to dig out what would be its advantages and disadvantages in the longer run and how will he manage all such agreements.

Avoiding Mortgage Mistakes That Can Cost You Money

If you are planning to get a mortgage, then you should make sure that you avoid a number of common mistakes that will leave you paying too much money or getting into financial difficulties. If you are aware of potential mistakes you can make then you will be better equipped to get the best deal for your needs. Here are the most common mortgage mistakes and how to avoid them:

Not sorting out your finances

If you try and get a mortgage before you have sorted your finances out, you could find yourself getting a rough deal or even being rejected for a mortgage. If you are rejected for a mortgage it can harm your chances of getting one from elsewhere. Before looking at mortgages, get all of your finances in order and have all your paperwork ready to submit to mortgage lenders. Also, get hold of your credit report and make sure that all the information on it is correct. If there are mistakes on your credit report it could harm your chances of getting a good mortgage.

Looking for a house without pre-approval

Many people make the mistake of looking at property without having any idea whether they can secure a mortgage to pay for it. The most common mistake people mistake is confusing ‘pre-qualified’ with ‘pre-approved’. Pre-qualification is a very initial estimation of how much you can borrow, and there is no guarantees you will get this amount at the rate you want. Pre-approval means that you go through the credit checking process and the lender agrees in writing to give you a certain amount of money. Getting pre-approval gives you a budget and makes you much more attractive to sellers because you have the finance already in place.

Borrowing too much

Perhaps the biggest mistake people make is to borrow too much money. This can come about through a combination of not being honest with yourself and pressure from lenders. If you are not honest with yourself about how much you can afford then you will end up in financial difficulty. You shouldn’t be tempted by lenders who offer you overly generous mortgages because it is you who will pay the price if you cannot keep up with the repayments. Work out how much you can comfortably afford to pay each month and stick to this budget.

Not shopping around

It is quite easy to get hold of a mortgage, but if you want a good deal you have to shop around. If you find a good deal, you shouldn’t automatically think it is the best deal you can get. Many companies offer amazing deals that turn out to be a lot more expensive than initially advertised. Do your research and find out what someone with your credit rating should be paying on average for a mortgage. If you do this then you will end up with a much better price.

Paying for things you don’t need

With a lot of mortgages you will be offered extra items and pay extra fees that are simply unnecessary. Although they might seem a small amount here and there, they can soon add up and you could end up paying a lot more than you need to. Make sure that your mortgage agreement only includes the items that you need, and query the price of any fees you think are too expensive. If a company tries to charge you too much then walk away. Remember, there are always other providers for you. If you are careful and avoid common mortgage mistakes then you will get a great deal and remain financially stable.