The economic downturn and global recession of the recent times and the consequent unemployment and drastic income cuts have placed many in dire financial crisis and more and more people are finding that they are in the midst of accumulating debts and loans which, it seems impossible to repay in their lifetime. Credit card debts, mortgages, personal loans and other credits stare at the face of a majority of people around the world. With the creditors practically at their doorsteps demanding repayment, these debtors are seeking alternative ways to pay off their debts with fewer burdens on their monthly budgets. One such method is to write off your debts; that is, a portion of your debt is written off with mutual agreement between the creditor and the debtor; it is known as IVA, or Individual Voluntary Agreement. The IVA allows the two parties to reach a new agreement upon which the debtor pays off the credit in affordable monthly installments until the term of the IVA expires. After this period, all the outstanding debt is written off by the creditor.
However, this may not solve the problem for all. For them, there is another option to completely write off their debts. The debtors can legally write off their debts as per the recent changes in the Consumer Credit Act 1974 which states that if you have taken out a loan before April 2007 and you find that the loan agreements you signed with the creditor are unenforceable loan agreements, you can challenge these agreements in court. If the court finds that the credit agreement is unenforceable, the creditors have to write off the entire debt.
There are other methods to partially write off your debts. By obtaining debt settlement help and the best debt advice, you can successfully manage your credits and keep your credit rating from falling low. You can enlist the services of a debt settlement attorney for paying off your loans and debts. Debt settlement attorneys acts as middlemen between you and your creditors and help you to reach a fresh agreement with the creditors so that you repay at a new rate; sometimes the interest is written off as a result of the negotiation of the attorney. This method can be used to settle credit card loans and loans taken out from individuals. You can either settle the loans on your own or hire an attorney to legally deal with the issue.