Debt and financial difficulty can visit anyone if one is not prudent about spending. Debt can be extremely difficult to pay off for a few people especially without an IVA plan at hand. Living on a strict budget is not enough to resolve your financial problems and you might get even deeper in debt. Getting
help is the easiest way around it. If you don’t have any family or friends well-versed in these matters, an IVA credit counselor is your best bet. Meeting with a, IVA credit counselor to negotiate concessions from your creditor may help. However, do your homework before meeting the counselor and get the following information together for a more fruitful discussion:
- A list of all your debts including the amount of your current monthly payments, the interest rate on each debt, whether a certain debt is secured or unsecured, and whether you have fallen behind on a debt (and by how much).
- Debt-related paperwork including loan agreements, credit card statements, and any threatening notices you may have received recently from creditors.
- A realistic budget.
- A list of your demands each of the creditors including a temporary or permanent reduction in your interest rate, interest-only payments for a while, or a temporary or permanent reduction in the amount of your monthly payments.
- Any restrictions or time frames for the IVA plan.
- A list of what you are willing to give up to get what you want. For example:
- You’ll stop using your credit card until your debt is paid off.
- You’ll allow the creditor to put a lien on an asset you own.
- You’ll pay more on your debt than what you offered at the start of your negotiations (if you’re certain you can afford it) or after you’ve made a certain number of reduced payments.
This information will help you and your credit counselor in putting together the best course of action for you. Need more info? Check out our blog for all debt and IVA related 101!