Life is such that even if you’re very careful, at some point, you’re bound to face debt in one form or the other. If you’re smart about how you spend your money, you may only have to face debt in a form that you can easily replay but in most cases, people incur debt because they couldn’t pay for something in the first place so the debt is usually a much larger amount.
If you get caught up in your debt, it can be very daunting for you since it seems like an endless cycle of payments. It might seem that way but fear not, since there is an end to your debts and there are ways out of them for people in similar predicaments. You can head over to https://www.thelondoneconomic.com/lifestyle/money/iva-or-debt-management-plans-whats-the-best-option-for-you/07/03/ to learn more about how you can manage your debts.
If you own a property and are in debts that you can’t handle, you could either opt for DMP (Debt Management Plan) or an IVA (Individual Voluntary Arrangement). The differences between these are clear as day but both of these options will help you figure a way out of your debts based on the circumstances you’re in. Both of these have certain advantages and disadvantages over each other as well, which is why it’s a good idea to speak with your financial consultant about your options beforehand.
To put things simply, an IVA is a legal agreement between a person in debt and their creditors and the person in debt only has to pay back what he or she can afford within an agreed upon time frame and the rest of the debt is written off after this time frame comes to a close. In DMP, you have to pay back all of what you owe to your creditors in reduced payments.