We have a specific page set up to answer any queries you might have about the advantages and disadvantages of an IVA, which is something you ought to read through before deciding to make an application - some of the advantages and disadvantages are laid out below, but you can also head to our pros and cons page for more detailed information.

• Consolidate your debts together - this is one of the main reasons for taking out an IVA. With an IVA, you can consolidate your unsecured debts together into one easy to manage package, making for a much more streamlined approach. This can help take the worry away from having to pay each debt off individually, making an IVA less time consuming to manage.
• Your creditors can't keep chasing you - with an IVA, your creditors are not allowed to keep chasing you for your debts, which makes them a lot more manageable. They also can't take further legal or recovery action against you.
• You may not have to pay all the money back - this will largely depend on the amount of debt you have, however with an IVA, you only keep paying until the IVA term has ended, so if you have a lot of debt, the chances are you won't have to pay it all back.
• Interest rates are frozen - interest rates and extra fees are frozen for the duration of your IVA, so you won't have to worry about paying any additional charges.

It's important to know whether you qualify for an IVA with NDH Financial before applying for one, as the application process can be quite lengthy, although we're here to help you every step of the way. Whether you qualify or not will depend on many different things, including the type of debt you have and whether it's classed as secured or unsecured, the amount of debt you have, the individual creditors linked to your debt, your current earnings, the amount of money you currently have saved and your affordability. For more in-depth information on whether you qualify for an IVA, check out our handy guide here.

One of the main things that people tend to worry about when they have a debt burden is how this will affect their credit score. Consolidating your debt can lead to a negative credit report, depending on the consolidation option you choose, however having debt in itself will affect your credit score negatively, so consolidation may actually be the better option in the long run. Consolidation through a loan will usually have less of an impact on your credit report. Whilst consolidation through an IVA will affect your credit score, your credit score would still be affected regardless, particularly if you have overwhelming debt and a debt settlement is not reached - although the level your credit score may be affected will be different depending on the amount of debt you have, the creditors involved and whether you have any existing CCJs, defaults or missed payments registered.

Consolidation will hurt your credit score, but the good news is that it's only temporary, and by paying your debts back under a debt consolidation company, you will be actively working towards raising your credit score, on your journey to a debt-free life. An IVA will affect your credit rating, as your details have to be kept on the public Individual Insolvency Register, and this information will remain on there for the duration of your IVA. However, this information will be deleted from the register 3 months after your IVA has finished. Your IVA will also be shown on your credit report if requested, but again, this is something that will be removed after 6 years (from the start of your IVA), and paying off your IVA and the rest of your debts will naturally increase your credit score anyway.

If you have a low credit score before taking out a debt consolidation loan or an IVA, you may find it hard to get a good rate or get approved at all, however there are things you can do to raise your credit score slightly - for example, registering to vote if you haven't already done so. If you feel that an IVA may be suitable for you, contact NDH Financial and we'll run through the process with you and see if we can help you apply.

It's important to be aware of the disadvantages of an IVA as well as the benefits, so you can make the right decision for yourself.

• Only debts with unsecured creditors can be included - this means that if you have a large amount of secured debt, you may want to consider another option, as you need to be able to pay off all your debt, as well as the amount contained within your IVA.
• Your IVA can be terminated if you fail to adhere to the terms - as an IVA is legally binding, it can be terminated by your creditors if you fail to make your monthly payments. If it is terminated, then your creditors are free to add on any interest or charges accrued during the period that you were in the IVA.
• IVAs have fees - to take out an IVA, there will be fees that you need to pay to the licensed insolvency practitioner you use to apply for the IVA with, so you need to make sure you can pay these off too. More information can be found on our fees page.
• Credit Rating - by entering into an IVA, your credit rating may be affected.

The costs associated with an IVA will differ depending on the provider that you use. With NDH Financial, there are no upfront fees, and we do not charge for the initial assessment or your initial consultation with ourselves. You will only be asked to start paying fees once your IVA has been approved, and these will be taken from the payments you make into the IVA.

Our fees are referred to as a Nominee's fee and a Supervisor's fee, and they are included in the money you pay back over the term of the IVA. Our fees are only taken from your monthly payments or the asset realisations paid into your arrangement. More information about the costs associated with an IVA are broken down on our fees page.