IVAs stand for Individual Voluntary Arrangements, a method to end difficult debt problems using a manageable repayment plan with a single, fixed monthly repayment plan. They last at least 5 years and at the end they can write off all the debts they applied to. Throughout the journey, there will of course be occasions where we all like to spend more money, such as birthdays, holidays and the Christmas season. However, you will need to keep to the repayment schedule that comes with your IVA in order to have your debts written off at the end to start a debt-free life again. These tried and tested tips can help you enjoy those special times of the year whilst helping you stay comfortably within your budget.

1. Shop as early as you can

If you habitually keep an eye out, you’ll find plenty of bargains for special occasions later on, for example, Christmas items are often substantially discounted out of season. It’s also useful to save up points on supermarket loyalty cards or use a supermarket savings stamps scheme.

2. Never contemplate going to a Loan Shark

Anyone who offers you a ‘loan’ with no credit checks or paperwork could be an illegal money lender – meaning a loan shark. Loan sharks use highly aggressive tactics to collect payments for ‘loans’ carrying extortionate ‘interest charges’. Should you have any concerns about this issue, call the UK’s ‘Stop Loan Sharks Team’ on 0300 555 2222. It’s worth remembering that IVAs are just one of several safe, legal debt solutions – all of which don’t put you in danger.

3. Try using a pre-paid card

While its true that you can’t use store or credit cards while you undertake your IVA, there are still pre-paid cards to give you the consumer protection and convenience of shopping ‘with plastic’.

4. The internet holds many bargains

Today’s search engines have excellent price comparison features to instantly find the lowest online prices for any given product. In the winter months, you’ll also avoid the trip to the shops in unpleasant weather.

5. EBay and other auction-style websites offer tremendous value

These kinds of sites often offer gift items for far less than conventional shops. It’s a good idea to read up on EBay’s consumer safety guides to make sure that any designer articles are genuine before you buy.

6. Research and planning for holidays

IVAs do last for five years or longer and one requirement is to repay as much as you can afford within your means. Planning ahead is therefore strongly recommended for your holidays. There are now online group-buying clubs who offer very large discounts on holidays in great destinations served by the budget airlines. If you also share accommodation with friends and family, you

Individual Voluntary Arrangements have not been designed as a ‘drastic solution’ for problem debts – instead they are intended to offer a workable, everyday solution. If Individual Voluntary Arrangements are properly arranged, they would ensure you have sufficient funds to always meet your reasonable living expenses. This last point is crucial. IVAs last at least 5 years and you must adhere to all the terms and conditions in order to gain your new debt-free life at the end. Your Insolvency Practitioner should have created a viable repayment plan without asking you to pay ‘extra’ fees for their services – those should be incorporated into your single monthly instalments. If your arrangement is not operating in this manner, you are strongly advised to gain professional and impartial advice from a debt solutions specialist.

Author Bio: Paul Goodman works for Debt Options, who offer independent advice on all the major legal debt solutions, including IVAs. They can advise you on managing an IVA to gain the full benefits on successful completion.

Category: Finances
Keywords: IVA, IVAs, Individual Voluntary Arrangements