It is not necessarily better to choose an Individual Voluntary Arrangement (IVA) over a debt management plan, as the right option for you will depend on your specific circumstances. Both IVAs and debt management plans are options for dealing with overwhelming debt, but they work in different ways and may be more or less suitable for different people.
Here is a comparison of IVAs and debt management plans:
IVA:
- A legally binding agreement between you and your creditors
- Allows you to pay off your debts over an extended period of time, typically five years
- May have a negative impact on your credit rating
- Can be terminated if you fail to make the required payments or do not adhere to the terms of the IVA
Debt management plan:
- A repayment plan that you negotiate with your creditors
- Allows you to pay off your debts over an extended period of time
- May have a negative impact on your credit rating
- Can be terminated if you fail to make the required payments or do not adhere to the terms of the plan
It is a good idea to speak with a financial professional or an attorney if you are considering an IVA or a debt management plan and are not sure which option is right for you. They can review your specific situation and help you determine the best course of action.