An Individual Voluntary Arrangement which is usually known as IVA is one kind of legal method of fixing debt-oriented issues. This enables a person to pay a certain percentage of their unsecured debt back to their lenders in reasonable monthly installments over some agreed terms and conditions, usually around 5 to 6 years.
When the IVA completes successfully, the outstanding debt is written off & the borrower is issued with a document of completion. So, at this moment, any balances remaining on the debts incorporated in the Individual Voluntary Arrangement will be written off.
Celebrate Your Financial Freedom
An Individual Voluntary Arrangement is a strict means of fixing your debts & a lengthy one at that. So, now it’s over, & the best thing is you have got control of your finances once again & your money is yours to do with what you want. The very first thing, only celebrate the completion of your Individual Voluntary Arrangement!
Well, congratulations on successfully getting to the end of your settlement agreement & getting rid of the debt! What an achievement!
After having your finances under the strict checks for the past 5 to 6 years, it’s time to celebrate this milestone & treat yourself. Of course we are not talking about a month away to live a life of luxury. Perhaps you can go for a dinner or a weekend away with your friends is more in line with the budget. So, whatever you do, do not forget to mark the occasion in a specific way.
Check Your Credit Score
A record of your IVA settlement agreement will remain on the IVA credit File report for at least 6 years from the specific date your IVA settlement plan began. It might be as early as you make your ultimate payment or it might be another 1 year after your agreement ends.
Your Individual Voluntary Arrangement provider can not update the credit score, only the lenders can – & they’re usually given a copy of the final report which may trigger them to do the update. Well, this is definitely understandable that you would desire to see some improvement on the credit score – therefore, make sure you keep an eye on it after you complete the IVA settlement plan. And if there are lenders that do not update it, you can simply contact them, or to the credit reference company directly, & ask that they be updated. So, by doing this, it ensures you’re well on the way to financial freedom.
Well, you will be able to check your credit score on different websites & try to compare them all against each other. Assure there are no adverse details dated after the starting of your stepchange IVA settlement plan, since there shouldn’t be any new details after this date. So, if you want to know more details about credit scores, you can always check out our Credit Scores Understanding guide.
Start Repairing the Credit Score
Well, this is pretty essential that you work towards restoring the credit report which would have been tarnished after you applied for an IVA settlement plan. Well, there are small, simple things that you can perform in order to help enhance this over time, like;
Prove where you live – try to register on your electoral roll; bankers can verify who you are & also make you appear more stable.
Invoke a bank account – it will show good money management.
Get your name on all the utility bills – like a phone contract since this is a form of credit & keeping up to date with payments will amazingly help to boost up your credit score.
Get a credit builder card – so, paying this off on time will aid you to build a positive credit history. But, make sure not to go overboard.
Begin Saving
This is always a great idea to have a certain amount of money put aside for a rainy day. Just put a small amount of money away monthly or weekly depending on how you’re paid & which would be the best suited!
Well, putting a small amount aside bit by bit enables the money to build before you even determine that it’s missing from your pay packet. In order to assure you are saving, then you can set this up as your direct debit or standing order with your bank in order to make sure the money is withdrawn & put into your savings account; it means you won’t need to worry about doing so.
People save for different factors, for holidays, emergencies, or even house deposits. So, whatever be the reason, this is always a great idea to have some money for falling back on to assure you do not have to resort to credit to pay for certain unexpected things.
So, if you are coming to the end of an Individual Voluntary Arrangement with Debt Movement & have any sorts of questions about anything related to apply for An IVA, what the ultimate
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stages involve, how to go forward once your IVA settlement plan gets completed or any other concerns, feel free to get in touch with our professional & friendly team today. The guides will aid you to put your mind at ease about the transition into a debt free life!
