The individual voluntary agreements are known as the IVAs which are processed in the UK. The process depicts that any individual is eligible for the individual voluntary agreement if s/he is deeply sunk in debt and wants to avoid bankruptcy. The IVA is a legally binding agreement that is agreed between the debtors and creditors. The amount varies to a huge extent and depends solely on the financial condition of the debtor. The creditors may not agree to the overall regulations of the agreement, but as a matter of fact, they do choose for the individual voluntary agreements because it becomes more beneficial for them instead of making a person bankrupt. That being said, there are a lot of pros and cons present in the IVAs and in this article we are going to discuss about the benefits and probable risks that can take place within an IVA agreement.

One of the major benefits is the financial condition of a person is left to remain confidential as the bankruptcy announcements are mostly broadcast in the TV or news paper; but this is not with the case of IVAs. Though the creditors still might consider the debtor as a risk since this does not appear on the credit report. The agreement is solely done between the debtor and creditor.

Another positive aspect of the IVA is that within the period of time, they are really very much effective and can be paid off easily since and a period of five years is long enough in paying an agreeable amount. Within that period, almost all the debts can be covered or cleared up; and the rest of the debt is written off. On the other hand, bankruptcy runs out within one year and the cost of bankruptcy is much more than an IVA.

As per IVA experts, an IVA offers much more protection than any of the debt management schemes. Once a creditor agrees to a fixed amount to get repaid per month, he/she cannot deny or withdraw from the agreement. But any other debt arrangement process does not allow such features because those are not legally binding. The IVA will show up on any credit report similar to any file for bankruptcy; but the difference is, the IVAs portray the debtors’ willingness for repaying the debts while in case of bankruptcy, the debtor has surrendered that he/she cannot repay the debt.

Now let us have a look at the possible risks that might be involved with the individual voluntary agreements.

  • With the acceptance of individual voluntary agreements, the individual’s credit rating can be affected for a certain period of time.
  • The banking options will be restricted and certain facilities like overdraft, credit card or the cheque will not at all be approved by any individual’s bank. Only a simple bank account will be allowed.
  • There will not be any cancellation clauses and so the payments cannot be stopped if it does not suit the creditor.

A guarantor loan is just a fast process for attaining a good credit history if any individual does not have a proper credit standing in the present date. If you are not able to establish any credit standing within a number of good repayments, the credit ranking of the person increases and the person can be assumed as credit worthy, low-risk person who can opt for finding the funding effortlessly on his/her own. Now, that being said let us delve deep into the formats of guarantor loans. Certain guarantor loans demand that your chosen guarantor needs to be a home owner while most of such loans do not demand that criteria to be a stipulation for the loan.

While looking for the guarantor loans, it is beneficial to opt for the secured guarantor loans because those are cheaper and their annual percentage rate is comparatively less given that such credit will be underwritten by the property which is secured within it. On the contrary, the unsecured guarantor loans tends to be a bit high in percentage ratings and the reason is, the collateral is not going to be contained within the small print of this loan.

According to, the guarantor loans will be definitely advantageous for such people who have a steady repayment records and when a couple of years is completed with such a record, the expense of their debts actually reduces to a huge extent. In this consequence, the APR will be lowered because the person has a good reputation of returning or repaying the amount within the stipulated period of time, the borrower’s credit worthiness becomes really high. This in turn leads to the fact that the guarantor can rest assured regarding taking any independent steps of attaining the loan repayment.

It is a fact that a huge number of people is looking for new and useful choices for attaining money and we care about your valuable time. This is the reason we offer a consolidated list and details of our lenders who are willing to offer loans on the guarantee of a third party. We know the needs of any person might require a lump sum of money in a short time, thus, the guarantor loans are a good solution within the personal finance options offered in the marketplace when the individuals are really finding it difficult to cope with the lines of credit.

We offer our clients a convenient guarantor calculator that comprises of two slides. In this application, you need to input how much you are required to borrow for what period of time and after clicking on the “get results” you shall be able to have a complete list of our lenders who can offer you loans. This software is specifically designed to help you in working out the specific size of guarantee and help you if you are having any trouble in attaining approval from any lenders. Any person can act as your guarantor on the condition that they are not financially linked with you like a husband or wife.

I would like to share my experience with the for having logbook loan. I believe that most of the people in UK are aware from this service. When you need money desperately and can’t wait for the long and lengthy approvals from the bank then you become stressful and panic as well. There are certain limitations from the bank for issuing the loan to those who have a bad credit history. With the log loan you can get the money quickly as possible but the value of the money depends on the worth of your car.

While working in the construction industry; you face ups and downs and same happened with me. I am working as an Engineer in the construction industry and when recession hit back the economy we suffered as well. I faced a lot of issues because of that and it put me in vicious cycle of the loan and huge interest rates. At this point of time logbook loan was the one to help me out. My case was bit odd; I didn’t receive the two months salary and didn’t even have saving. For one month we survived but for the next month we were collapsed. I didn’t have a single penny and my home rent along with the credit card and all the bills were due. I was much worried and then I started checking the internet for the various options. I read about many banks and contacted them but they were giving reasonable interest rate only if the salary account has stability but last 6 months were very bad against my finances. I read about and then I decided to contact them to get the necessary information.

Rather than relying on the customer service information I checked the reviews about I verified the processes and tried to get the feedback from the existing customers as well. The feedback was very encouraging and positive; every customer was satisfied and happy. I didn’t give a second thought about banks and requested the team of logbook loan to expedite my case. They visited me next day and according to the worth of my vehicle they informed me about the loan. I was happy as the loan was enough to meet my expenses for next 2-3 months until my pending dues were to be released. I signed the bill of sale against my vehicle log book and everything was sorted smoothly. I got the money and paid to the lenders, in order to avoid any issues.  I have paid the 10 months payment very smoothly and never came across any excess charges; however even 1 day late payment they informed me to pay on time, in order to avoid the car repossession.

I am happy that all my issues were sorted out in nice and smooth manner. It is only a matter for 12 months; yet it saves you from the big problems and surcharges. is indeed big support to needy community.