An IVA is not suitable for everyone, so you may have to consider all possible alternatives to an IVA before deciding upon a debt solution. Always seek professional debt advice.
One Advice will be happy to help discuss any possible alternatives to an IVA plan, please contact our freephone number for more information, 0800 048 1752. If you are still considering your options then you might want to try the One Advice 1 Minute Debt Wizard which will show you some of your debt solution options, including any alternatives to an IVA, based on your finances.
Trust Deed: You may be looking for one of the alternatives for an IVA because you are not a resident of England, Wales or Scotland. If you are a Scottish resident looking for an IVA alternative, a Trust Deed could be for you.
It works on a similar principle to an IVA where you commit to making payments over a number of months (an average of 36 months with a Trust Deed) and any unpaid debt will be written off on completion of the agreement.
Debt Management Plan: A Debt Management Plan is one of the alternatives to an IVA. This type of plan also allows you to make a reduced and affordable monthly payment to your unsecured creditors.
If you fit the IVA criteria, we would always recommend that you explore that option first as there are additional IVA benefits which are not applicable with a debt management plan. For example, a debt management plan does not guarantee the freezing of interest and charges, offers no amount of debt relief and the plan will continue until you have repaid your unsecured debts in full.
However, if you are not suitable for an IVA or cannot afford further borrowing, a debt management plan is one of the alternatives to an IVA that can offer you a single reduced monthly payment to your creditors through this informal arrangement.
Bankruptcy: Bankruptcy should only ever be considered when all other alternatives to an IVA have been exhausted. Only take professional advice from a Licensed Insolvency Practitioner.
Secured Lending: You may wish to consider secured lending which could consolidate all of your unsecured debts into one secured loan payment. This is generally only an option for homeowners who have more equity in their home than unsecured debts, and are sure they can afford the additional borrowings.
It is important to note that you should always fully consider the risks of secured lending as you could put your house at risk if you struggle to make the repayments. We would advise that you seek expert advice about secured lending so you can determine whether you can realistically afford the repayments of your secured debt consolidation loan or whether you would be better suited to one of the others alternatives to an IVA.
Unsecured Lending: This is one of the alternatives to an IVA which is only suitable for a limited number of people. Obtaining an unsecured loan at a sensible interest rate is always difficult if you are financially stretched or have been refused in the past.
If we assume that you have already explored borrowing from your bank or building society or increasing the limits on your cards and still have a requirement for additional borrowing, then the truth is that you are probably already financially stretched. You probably don’t need to borrow more money, but rather you need to make your existing debts more affordable through one of our IVA's or alternatives to an IVA.
Remember, there are alternatives to an IVA available. Your financial circumstances are unique and the right debt solution for you can only be determined through professional debt advice.
Our advisors are on hand to offer you further information about the alternatives to an IVA, call now on 0800 048 1752.