Debt is one of the important things that shape the lives of people. There are several reasons why a debt plan can improve or lower a person’s life quality. For example, students find it way easier to pay their educational expenses with a debt plan.
But a problem with debt plans is that they can also become disastrous too. People might spend their entire lives paying off their debt payments. Therefore, you have to find out the right way of repaying your debt, so you can enjoy your financial freedom once again.
An IVA plan is one of the best ways of beating your debt. It allows you to enter an agreement with your debt provider. Many people consider a debt plan to be very helpful for repaying the debt. Keep reading this article as we are going to share with you the five benefits of an IVA plan!
1. A payment you can afford
Many people have the problem of paying the debt installments because the amount keeps changing in some cases. But what if you could pay a fixed amount every single month to your debt provider? An IVA plan allows you to repay your debt in fixed installments; you can find out more about how it works in detail, but here is a basic overview.
The fixed payment plan of an IVA enables you to pay your monthly expenses. You can set aside the money you have to pay, so you have more freedom of enjoying your personal life.
2. The end date is fixed
Most debt plans come with repayment cycles that are not fixed. You may take more time than you thought initially to free yourself from the debt, and therefore, you might get stuck in the loop of paying your money back.
But the good thing about an IVA plan is that you have to pay your money back over a fixed period. The normal duration of an IVA plan is about six years, and you can repay the money in a predetermined duration, so you can plan your life easily.
3. Trustable legal agreement
One of the reasons why people are afraid of a debt plan is the fear of debt providers. Your debt provider might end up taking everything from you if you default on your debt. You have to secure yourself from the debt provider so they can’t take money from you forcefully.
The best thing about an IVA plan is that it helps you secure yourself from debt providers. When they enter a legal agreement with you, you don’t have to worry about your assets, and they will have to wait for a fixed period until you can repay your money.
4. Everything is discreet
An IVA plan is a discreet plan that keeps your information safe from other people. You don’t have to worry about sharing your details with other financial institutions, and all you have to do is share your information online on the Insolvency Register. The IVA plan allows you to repay your debt without sharing your information with several other financial institutions.
5. Best for directors of limited companies
Sometimes repaying the debt becomes a problem for the directors of limited companies. They have a hard time getting rid of the debt, and if they fail to repay their debt, they might be advised by the company to leave their position.
The good thing about an IVA plan is that it’s best for the Directors. They can repay all their debt amount without having to resign their post, and otherwise, they will have to leave their position as a director.