The best advice to any person who wants to consolidate their loans is to use of a good consolidating program, such as, debt management scheme. This is also what we call IVA or Individual Voluntary Arrangement. This is a plan which is drawn up by a legal qualified insolvency practitioner (IP). S/he will look at your income and expenditure so that it can be decided together with you on what you can afford on a pro-rata basis. The IP will make sure that each creditor is paid proportionally in terms of their percentage to your overall debt. The best IVA debt consolidation advice is when the insolvency practitioner renegotiates with all your creditors and an agreement being reached where they will cut all your debts by up to seventy per cent at a stroke. By doing so, your total debts are reduced by two thirds of the original loan figure.
What every person should know is that an IVA is a legally binding agreement between the debtor and his/her creditors. The monthly payments arrived at, should be paid in full at the end of the month and after the usual five years the loan is completely written off During the IVA period the creditors are not allowed to contact you in any way. After the IVA period (five or six years) you will be debt free.
This type of IVA Debt Consolidation Advice is not easy to come across, but if you take your time by doing your homework correctly, you will surely hit the jackpot. One thing you should be aware of is that, there is a certain minimum amount for a person to qualify for an IVA. This minimum amount is usually 15000 pounds or more debt in the market. To choose the best IVA, you have to go through a detailed search about the different companies that offer it, so that you come up with the best that suits you. Anyway, all said and done, an IVA is the best tool to overcome the credit burden and it prevents you from being declared bankrupt. Normally, the banks take the decision of taking an advice as positive one and they will usually offer you with another loan if you need one once you have successfully completed the IVA.