Are your debts starting to overwhelm you? When you get to the end of the month, are you running out of money before all of your bills are paid? This is certainly a frustrating and very troubling thing to have happen.
Before you begin to search for solutions, you must first understand what got you into the mess you’re in. Either (1) you have been selfish and purchased items that you really couldn’t afford (be honest with yourself here), or (2) you have had a catastrophic event happen to you (like a medical issue) and are now burdened with large bills that just could not have been avoided. If your answer was #1, you should first learn about how to change your spending habits so that once you are out of your situation you don’t just dive right back into the same problems again.
Look into an IVA
If unsecured debts are weighing you down and you are serious about getting rid of them, then an Individual Voluntary Arrangement (IVA) might be right for you. What is an IVA? This is simply an agreement between you and your creditors – over a 5 year period, you will pay them what you can outside of reasonable living costs and you will not incur any interest on the remaining debt. After your IVA has been successfully completed, any remaining debt can be legally written off .
Pros and Cons
As you may have guessed, there are pros and cons to this agreement. Here are a few of each:
- You will be debt free at the end of your IVA (only on the unsecured debts)
- You will not incur interest on your debt during the payoff period
- There will be one affordable monthly payment
- Your job and home won’t be affected
- You will not qualify for any other credit during this IVA period or a year after
- You will likely pay more than if you were to file bankruptcy
- You will need to live on a fixed budget during the IVA time-frame
- You might need to release some equity from your property at the end of the IVA term
Get Rid of Those Debts
I have been in debt and I have also experienced debt freedom. Let me tell you, being debt free is a million times better than making payments each month. Now that I am out of debt my cash flow is massive and my savings account is increasing by thousands of dollars at a time. If I lost my job tomorrow, I wouldn’t even sweat it for at least six months thanks to my debt freedom. How long could you last if you lost your job? A week? A month? Maybe it’s time that you get rid of that debt once and for all!
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.