- Wednesday, 28 April 2010IVAs can be beneficial but they are not necessarily easy to live with, suggests a credit expert.
Chris Tapp, director of Credit Action, said that regulation is required to make structured payments after someone has entered into an
IVA.
People can use
IVAs to pay off debts over a fixed period and the debt is usually cut to an affordable level.
Mr Tapp said: "It is an agreement that works through a number of years, and you do have to keep making payments towards your debt, at the end of which the rest is written off."
IVAs can be helpful for people with a lot of debt but they need to have an income in order to repay the money they borrowed. They are usually an option for people who have got into financial difficulty by borrowing too much.
Bankruptcy should not be taken as a light option and all methods of repaying debt should be explored, added Mr Tapp.
Credit Action is a national charity committed to financial education.
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