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| Debt Management Plans (DMP) Vs Individual Voluntary Arrangements (IVA) |
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| It is vital that you fully understand exactly what the differences are between a Debt Management Plan (DMP) and a Protected Trust Deed (PTD) is before you enter in to any agreements. |
We have put together a brief list of the Pros and Cons for both Debt Solutions:
Debt Management Plans (DMP)
Individual Voluntary Arrangements (IVA) |
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| What are the Pros and Cons of a Debt Management Plan? |
Debt Management - Pros
- You will only make one affordable monthly payment
- Debt Management Plans are informal unlike Individual Voluntary Arrangements (IVS)
- You can act as a company director
- Your Interest and Charges may be stopped and Frozen
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Debt Management - Cons
- Your credit rating will be effected
- Not all creditors may agree to freeze interest, unlike an IVA
- You extend the time you spend in debt even further.
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| What are the Pros and Cons of an Individual Voluntary Arrangement (IVA)? |
Individual Voluntary Arrangement (IVA) Pros
- Your creditors write off some of the debt, unlike a Debt Management Plan
- Interest and charges are frozen, Unlike Debt Management Plans
- You might well be able to keep your house.
- You don't face the stigma of becoming bankrupt, and you can keep your job if you're in a profession where you're not allowed to be bankrupt.
Individual Voluntary Arrangement (IVA) Cons
- You may have to remortgage order to keep your house and pay off some of your debts.
- You can't get significant unsecured credit.
- Your credit rating is affected for six years, which means new mortgages will cost more and you might have to put down a larger deposit.
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| Call Your Debts Cleared free on 0800 692 2000 or Take our online DEBT TEST |
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