Debt is such a four letter word! There are so many people out there now trying to help you get on track with your debt like Dave Ramsey, etc. I think our main debt is our house and vehicles. I can't really imagine not having a house payment. I think some people work toward getting the house paid off and I think that is wonderful, but it's not a priority for me now. I remember times when we had other debt like credit cards and bank loans that the payments were as much as our salary. That is scary! Especially when you don't see a way out! Fortunately we were never forced to declare bankruptcy and were always able to get money from another pot to pay off something and now we just don't use credit cards very often. Maybe for large purchases, but not for day to day things. There are other alternatives, like a IVA. An IVA is a legally binding agreement between you and all the people and organisations you owe money to (your creditors). You can try to arrange an IVA when there is no real prospect of paying off all your debts.With the help of a licensed insolvency practitioner, you work out what you can realistically afford to pay back over a period of time - often 3-5 years. If three-quarters of your creditors agree, all your debts and the future interest on them will be frozen at the time that the IVA proposal is agreed. Your creditors will usually forego some of the debt you owe and at the end of the agreed period these debts are written off provided you have kept up with the negotiated monthly IVA payments. As long as you are confident you can maintain the regular monthly payment that is agreed an IVA could be the solution for you and you could be completely debt free in five years!
Wednesday, February 20, 2008
debt
Debt is such a four letter word! There are so many people out there now trying to help you get on track with your debt like Dave Ramsey, etc. I think our main debt is our house and vehicles. I can't really imagine not having a house payment. I think some people work toward getting the house paid off and I think that is wonderful, but it's not a priority for me now. I remember times when we had other debt like credit cards and bank loans that the payments were as much as our salary. That is scary! Especially when you don't see a way out! Fortunately we were never forced to declare bankruptcy and were always able to get money from another pot to pay off something and now we just don't use credit cards very often. Maybe for large purchases, but not for day to day things. There are other alternatives, like a IVA. An IVA is a legally binding agreement between you and all the people and organisations you owe money to (your creditors). You can try to arrange an IVA when there is no real prospect of paying off all your debts.With the help of a licensed insolvency practitioner, you work out what you can realistically afford to pay back over a period of time - often 3-5 years. If three-quarters of your creditors agree, all your debts and the future interest on them will be frozen at the time that the IVA proposal is agreed. Your creditors will usually forego some of the debt you owe and at the end of the agreed period these debts are written off provided you have kept up with the negotiated monthly IVA payments. As long as you are confident you can maintain the regular monthly payment that is agreed an IVA could be the solution for you and you could be completely debt free in five years!
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