Business & Finance Debt

Got Debt Problems? Programs Could Be Available

There are many debt programs designed to help consumers that have debt problems manage their debt.
These programs aim to open the lines of communication between you and your creditors.
In addition, they are also designed to provide you with some relief from your mounting debts so that you aren't overwhelmed.
By consulting with a professional and specially trained credit counsellor, you will be advised of all the programs that are available for someone in your financial situation.
Your credit counsellor will listen to you explain your financial circumstances as well as the circumstances of your income.
Armed with that information, you will receive professional advice.
An experienced credit counsellor will be able to inform you about debt programs.
One such program is the Individual Voluntary Agreement, also known as the IVA.
The IVA is a formal agreement crafted by an IVA Practitioner on your behalf with your creditor.
Usually this type of agreement involves your creditor agreeing to accept a percentage of the amount you owe which is payable over five years.
After five years is up, the creditor then forgives the remainder of the debt if there is any.
This is a legally binding agreement.
Upon entering into it, your creditor can not call you or write to you regarding this debt any longer.
An IVA will also stop any bankruptcy proceedings that creditor had pending against you.
You will also avoid having to appear in court for this type of agreement.
Another option in the array of debt programs available to you is the informal arrangement.
This option involves your credit counsellor looking over your financial situation with you and coming up with an amount of money that you can live on.
The remainder is then proposed to your creditors as payment of a reduced amount of your debt.
Although this is not a legally binding agreement, it is still very important to make payments as scheduled.
You will have the negotiating power and support of your credit counsellor to help you through this trying financial time.
Both the IVA and informal agreement take into account the amount of money you have to pay your debts each month.
After reaching an agreement with your creditors, you will likely have money left in your monthly budget to enable you to enjoy your life without having worry about paying your debt problems as much.
The peace of mind that comes with using one of these debt programs can greatly improve your quality of life.
You will be able to enjoy your life more once you have a solid repayment plan on the records.


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