Top Tips To Handle Your IVA Debt
Unfortunately, after an IVA you do not have many options. An IVA debt is the ultimate credit score killer – you have proved legally that you cannot handle your debts and they need to be slashed if you are going to have any hope of being able to pay the debt back. Lenders will see this move as what it is – a risky borrower proving that they cannot be trusted with debt. Or at least the majority of lenders will think that. There are products available for those looking to pay back their IVA debt and turn their fortunes around.
One is an IVA mortgage – a refinance mortgage for those looking to eek out as much as they can out of their property to help pay off IVA debt. It’s not the most competitive mortgage, in fact it’s probably the most uncompetitive, but it will help you. As well as giving you some much needed capital it can begin to repair your credit rating – handling tougher debt will begin to convince lenders that you are a worthy borrower by handling your IVA debt and your IVA mortgage at the same time.
If you don’t want to refinance you can always use a secured loan as a means of paying off some or all of your IVA debt. A secured loan is just money taken for the equity in your home, so it’s your money and it’s safe. It can be used to pay off your IVA debt and it can be used to make sure you do not return to debt again. Because returning to debt after taking out extended finance on your home is foolhardy – any IVA product you choose to help you with your IVA debt will be a last-chance saloon for you as a home owning borrower – any more debt and your home may well be repossessed.
To be able to cope with the IVA debt and a mortgage or a loan will take a lot of work on your part. It means a whole new way of looking at your money. Expenses need to be cut, luxuries must be sacrificed and you need to start thinking about how you will be able to pay off your IVA debt tomorrow, not just today. But it will be worth the work – paying off your IVA debt will put you on the right track to financial peace of mind.