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Should I be really worried about?

CAN’T AFFORD YOUR IVA?

It seems like the cost of living has shot through the roof lately, what with humungous increases in gas, electricity and petrol and the banks failing to pass on interest rate cuts to customers.

We’ve found that people in IVAs think they need to grin and bear this – even though it makes it more and more difficult to afford their IVA payment. This is just not true.

The point about an IVA is that it is you doing the best you can to repay your creditors as much as YOU CAN AFFORD. If you genuinely have difficulty paying you should contact your IVA supervisor without delay. Nobody (not even your creditors) wants your arrangement to fail and it is usually possible to negotiate a variation to reduce your payments back to an affordable level.


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About ClearDebt

ClearDebt is here to help the hundreds of thousands of people in England & Wales who are deeply in debt

ClearDebt Some don't realise the seriousness of their situation, some think there is nothing you can do about it. Many are frightened of losing their home and livelihood. If you owe more than you can repay, ClearDebt can help you clear debt.

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I cleared my debts

Pete's story

Pete had a full time job and no debt, he never had a credit card or purchased from a catalogue until 2 Christmas’s ago he suffered a wage drop; his financial situation was never the same.

To ensure his two children had the Christmas they’d always had, Pete used his newly aquired credit cards to do the Chritsmas shop. Before he knew it, his debt spiralled out of control. He contacted his creditors (wise man!) and they reduced some of his monthly payments. He also tried to borrow money from the bank to consolidate his debts, but interest and other charges still were accruing and only worsened the problem.

That’s when he contacted ClearDebt and got our free, objective advice: We explained that an IVA would freeze interest on all his debts from the time his IVA proposal was agreed. For an IVA to work, however, the debtor must be confident they can keep up the regular monthly payments agreed in the IVA.

Pete was desperate and determined to pay back his creditors as much as he could. We arranged an IVA with a realistic monthly payment of £200: His creditors will get 71p/£ over a 5 year period.

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The Daily Debt

DEBT RESOLUTION BODY SLAMS GOVERNMENT DECISION

DEBT RESOLUTION BODY SLAMS GOVERNMENT DECISION The Debt Resolution Forum (DRF) slammed the government decision to scrap Simple IVAs (SIVAs), a new debt rescue tool withdrawn by government at the last minute.

The DRF, which represents firms handling the majority of IVAs and debt management plans in the UK today, 18 November, condemned the government’s announcement to scrap SIVAs.

Commenting, DRF Chairman, and CEO of ClearDebt, David Mond, said:

“It is impossible to understand why, just at the moment when more people need more help with debt than ever before, the government should decide to destroy years of work by the debt resolution sector, money advice charities and lenders by scrapping the introduction of the SIVA.”

"Banks and credit card companies are still frustrating people’s efforts to use their best efforts to repay as much debt as they can afford. The SIVA, with it’s simple majority voting and no modifications would have meant far fewer creditors would be able to stop IVAs by requiring over-indebted individuals to repay more than they can afford."

"The banks will benefit from this decision – not the struggling consumer.”

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