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The IVA (individual voluntary arrangement) is a suitable alternative for individuals desiring to avoid bankruptcy. This contractual agreement can be as flexible as the circumstances of an individual. These agreements may base on different factors, such as income, capital, and payments from a third party or a fusion of these. In this procedure, the debtor has some money after necessary expenses and priority creditors.
IVA approval can be a massive achievement. You have to strictly follow the terms of IVA proposal within a set period for a debt-free life. After paying money as per your limit during this time, the creditors can write off some debt. Here are some tips for a smoother IVA ride.
Live on Your Budget
The IVA proposal of the last page will be your budget. The budget lists items of your expenditure and income. For a few people, it could be their first experience to live on their budget without any credit. You have to restrict your spending with an active IVA. Make sure to stick to your available resources as much as you can.
Learn the art of budgeting because it becomes the key to success for IVA. With proper budgeting, you can save monthly allowances for yearly expenditure. For instance, if you possess a vehicle and MOT costs are mentioned in the monthly budget. Make sure to put money aside for MOT. It will help you to save money for MOT.
If you have other annual expenditure, make sure to put some money aside for them each month. It is essential to stick to your budget and put money aside. These activities help you to decrease nasty monetary surprises.
Pay Attention to Bonuses and Overtime
If you are struggling with unsecured debts, the IVA will become an efficient solution. A bonus or pay rise can always make you happy. Even small increments can increase your happiness. If you are subject to IVA, make sure to follow the rules and responsibilities. The standard conditions and terms of IVA may require you to report your commission, bonus, and overtime. A 10% increase may not subject to changes. After a particular raise, you have to report this bonus to supervisors within 14 days and pay 50% amount of raise. If you are sure that bonuses, extra money, overtime or wage rise can affect your IVA, you have to contact your supervisor. It will be good to consider the advice of professionals.
Stay Away from Extra Credit
Taking out additional credit may kill your IVA, so if you want to take an extra loan, contact your service provider. Getting some extra credit in several cases may become a breach of terms. If you need emergency funds, make sure to consult IVA provider.
If you need extra money each month, you have to reconsider your budget. Your budget is not working well for you. Instead of waiting for an annual review, you have to share this concern with professionals.
Work with a Support Network
Other than consulting your IVA provider, you can check other places for support. You may join online forums to consult money saving experts for their advice. They can help you to choose a debt-free lifestyle. Some people may work with debt management plans or available solutions on IVA. These plans can help you to decrease your debt and live a debt-free life. Online forums may offer you good help to deal with a mountain of debt.
Keep it in mind that IVA will be a beginning toward a debt-free life. If you want to increase your savings, carefully follow defined rules and restrictions. In case of any problem, immediately inform your service provider.
