What is an IVA?

When faced with spiralling debts looking for a solution is often confusing to say the very least, so ensuring you understand key debt management options and all the associated jargon is essential. In this article we will examine the key question of what is an IVA?
     An IVA stands for Individual Voluntary Arrangement and is an approach that can be taken by individuals to try and manage their debt problems. It is some times taken on by those people who are in extreme debt but who want to avoid the issues associated with bankruptcy - and an IVA may allow them a stay of execution at least. By agreeing a legally binding deal (that is overseen by an insolvency practioner) with those to whom you owe money it may be possible to avoid the immediate impact of bankruptcy.
     However, an IVA is not available to everyone so it is important to know if you qualify for this financial option.

What is a DMP? Debt Management Plans Explained

You may have heard the abbreviation DMP banded around in the papers or on the TV - well you should learn that this stands for "Debt Management Plan". Essentially speaking, a DMP is a way of trying to manage and reduce the monthly payments you are obliged to make on your existing debts by making a mutual agreement with your creditors. 
     This can be advantageous in some circumstances as it may in turn potentially allow you to gradually settle your debt over a more extensive and protracted period of time - which may allow you to relieve the immediate pressures of debt hanging over your head.
     However - there are also potential negative factors to considerer when thinking of adopting a DMP. For example in most instances there is a strong chance ongoing interest will still be accumulated against your outstanding balance.