Debt Management Vs Individual Voluntary Arrangements (IVA)

Debt management is completely different to an Individual Voluntary Arrangement in a number of ways.

Debt Management agreements are not legally binding, they are more of an informal “gentleman’s” agreement between you and your creditors.
With debt management your creditors do not have to stop interest or late payment charges
Whilst debt management solutions may greatly reduce the amount you pay each month, you may end up paying your debt back over a very long period of time. In fact if your payment does not meet the interest and late payment charges debt management solutions may never resolve your debt problems.
Creditors in a debt management solution may wish to break the arrangement at any time and ask for increased payments.

There are many organisations that can offer to negotiate with your creditors to agree lower monthly repayments. These however do not have to be granted and can be broken at any time. IVA’s are a legally binding arrangement between you and your creditors, which cannot be broken by either side. In addition IVA’s offer a realistic solution to people suffering problems with debt.