IVA or Individual Voluntary Arrangement can save a person from bankruptcy. An IVA can be defined as a legally binding contract between creditors and debtors. An IVA, which generally lasts for 5 years, makes a debtor free from debts after this period. And in this term, fixed monthly repayments indicating debtor’s available disposable income will be made. Debtors, who have financial support from relatives or have a reliable and regular income, are most suitable for this program. It is supervised by a debt management company. An IVA has various benefits. To begin with, the costs are lower.

All interest and charges on debt are frozen from the day of arrangement. The debtor’s disposable income is taken into account, and thus the repayments are set from that. It has fewer restrictions than bankruptcy. Creditors cannot bring any further charges in the name of debtors, such as bankruptcy. Successful completion of IVA improves the credit rating of the debtors. IVA is not published in local press like bankruptcy and the debtor is not required to inform employers. But it will feature in his credit file. Thus a consumer can find relief from overwhelming debts by a solution called IVA with all its debtor centric benefits.

Debt management programs are available at absolutely no cost, i.e. free, to reduce the burden of debt acquired due to personal loans, medical bills, credit cards etc. The basic step of controlling debts will be choosing one of it. For consumer debt reduction purposes, debt consolidation by debt Management Company can help in a great way, where a single monthly bill is distributed among all the creditors by the company. The creditors are contacted and requests are made to lower the interest rates. The free debt management plans have various advantages respective to their companies.

The advantage of these programmes is that, one need not to worry about the outstanding debts. The company also can request the creditors to lower the interest rates. The programmes may also result in formulation of a workable budget plan and the companies also provide credit counselling to the debtors in some cases. These programs are mostly non-profit, run by churches or other non-profit organizations. Credit card math is a free debt management plan, which is used to reveal the hidden costs associated with the credit card. The choice of a free debt management plan is totally upon the debtor as it helps to overcome his burden of debt.