How does it work?

The first step is getting in contact with a professional company who specialise in debt solutions. Once this is done, the company will then get any information needed to make up a more suitable payment schedule for your circumstances.

Is this classed as a loan?

This is not a loan in any way, shape or form. The company you choose to use do not lend you any money at all, they simply make arrangements with the people you owe so that the amounts you are paying are reduced to a more manageable level.

Will I still incur interest or charges on my debt?

The interest and charges on your debts may not always be stopped. However, in most cases, if it can be seen that the debtor is struggling financially then putting a stop to late charges and interest is common.

What is the general timescale to arrange it?

If you get in touch with the company today then they should usually start work on your case the same day. Usually they will have came to agreements with your creditors within 30 days to lower your monthly payments.

If I choose this will it affect my credit rating?

Making the decision to use this as a solution could result in your credit rating being affected. This is down to the fact that you are unlikely to be meeting the agreed contractual payments.

What happens if I get letters or contact from my creditors?

Any mail that your creditors send out to you should then be forwarded onto the debt management company for them to deal with.

Does the offer have to be accepted by the creditors?

Your creditors are not obliged to accept your revised payment plan. There is usually no problem though as the figures that are calculated for the new payment amount are based on your actual situation.

If you require any further information about IVA debt help then you should get in touch with a professional who will be able to give you all the answers you need.