One may ask what is debt management? Well, debt management is the process of bringing together ones debts from various sources, amalgamating or consolidating them into one single debt usually at a lower rate of interest. This process of debt consolidation has become very popular in the recent times because of the flexibility and simplicity it offers to the takers as it could freeze your interest payments and extend the period of your repayments. Such debts involves very common debts like credit cards, mortgages, student loans and other types of debts.
So how does one resolve the issue of debt and find a solution to the problem? One option that we can consider in order to resolve debt issues is the Individual Voluntary Arrangement, or IVA in short. This type of debt consolidation will allow you to get you out of debt over a five year period, which is often the case for debts of this type. The benefits of considering IVAs would include the freezing of interest, reduction in the total amount of debt owing, and legal protection from creditors.
No wonder why this method is still growing in popularity, since the number of lenders is on the rise. However, it should be reminded that once you take up an IVA, it is legally binding upon you to continue with the full term as stipulated in the contract. In case of doubt, the advice is that you should do your calculations and read up more on IVA at trapped.co.uk, which provides this debt repayment plan for its clients, before you decide to go ahead with it.