The Pros and Cons of Individual Voluntary Arrangements


An individual voluntary arrangement’s is the best and perfect solution for an individual or a person who has a huge amount of debt and he cannot keep the repayments anymore as we all know that there are so many other debt financial tools so IVA’s also have both advantages and the disadvantages

But the most important thing you should have to know about the IVA first and get the overview of the individual voluntary arrangement program that how it will works
If you want to get eligible for an IVA you must have to do some certain amount of minimum debts.
A professional qualified insolvency practitioner will assigned to assist you with your case.
There is a certain fees and charges you have to pay for the service of insolvency practitioner.
The process of negotiable between you and your creditor will be come up with the plan of re-payment so where you can tell that how much you will actually pay every month that can be easily affordable for you.
So if all the creditors will be agreed with your repayment plan then your program of IVA will be started and you just have to keep you repayments continues according to plan

Advantages of IVA’s

  • All the collection departments and the creditor will not call you anymore for reminding your debt payments if you have started a IVA’s plan then you will be protected.
  • All the IVA’s plans are for 60months so, if you were continue the repayment plan schedule then in 5 years you will be debt free.
  • An IVA is a program which have much better solution than filling bankruptcy. If you were finished with IVA’s then you will not have debt issues which are mentioned in your credit record like bankruptcy.
  • The best advantage is you should not have to pay more than you can afford, your repayment plan will be according to your ability that easily you can make. Or the best thing it is based on your income.
  • So when you are going through this type of plan it will constitute a positive experience in the sense of financial advices that will teaches you how to deal with the debt related issues.

The best fact and an achievement is that you will stay away from the bankruptcy.

  • After successfully going through the plan of IVA’s you will start your new life that will be burden free of debt.

These are some of the advantages when you are going through an IVA’S’s and when you compare it with disadvantages you will get the best option to take.

Disadvantage of IVA’s

  • When you are going with the time frame of five years you should have to maintain all the payments, otherwise you will be the bankruptcy according to the circumstances.
  • If you want to do full and final settlement of an IVA’S plan then it means you will have sell your whole property to pay off all your creditors
  • It needs more effort moral and financial that able you to going through an IVA’S plan successfully otherwise you should have to choose bankruptcy as an option.
  • The process of IVA’s will give you negative result if you will not keep your repayment plan according to the schedule.
  • As bankruptcy,IVA’s also show the credit record, but you can start it up again when term is up and you have to gone through the program’s requirements successfully.
  • In IVA it generally requires that you have to tell about your all the assets which you have own. And if a creditor consider that you have too much property then he or she will ask you to sell them in order to pay them back.

As seen there are some disadvantages also present but no financial agreements exist without risk. There will be so many right options which can help you to become debt free. So make sure that IVA is a right option for you or not. A good financial management will gives you time and patience for taking best decision.

Energy Conservation Begins at Home

As Americans face rising fuel prices, many are looking for ways to save money and energy in their homes.

The pressure to reduce energy consumption and costs is inspiring homeowners to challenge the relevance of old heating and hot water solutions and consider other cost-effective options, such as wall-hung boiler technology.

Wall-hung boilers have been common in homes throughout Europe for the past three decades and are now emerging as a popular alternative for heating homes and businesses in North America.

Baxi Luna wall-hung boilers, for instance, are helping homeowners throughout the U.S. cut their home heating and hot water fuel consumption in half. These boilers are fully modulating, meaning they start at a preset, high-fire position and gradually reduce fuel output until the heating demand is met. At this point, the boiler automatically shuts off.

Billed as one of the quietest boilers on the market, Baxi Luna boilers are fired by propane or natural gas. No bigger than a kitchen cabinet, a Baxi Luna boiler can be installed in the closet – saving valuable living space in homes of up to 6,000 square feet.

The boiler also is making commercial buildings more efficient. For example, this year a heating specialist in Biddeford, Maine, installed eight Baxi Luna high-efficiency condensing boilers in the City Hall and City Theatre. People living in the city expect the new heating system to reduce fuel use by at least 50 percent and save taxpayers money even in the face of rising fuel costs.

Baxi Luna wall-hung boilers are approved by the American Gas Association and Canadian Standards Association. Consumers can take comfort from the boilers’ Energy Star certification (for energy efficiency) and H-Stamp rating (for operating effectiveness).

These environmentally friendly products are quiet enough to install in the back of a large closet, even in the master bedroom. They are ideal for in-floor radiant heating systems and are compatible with any type of air handler, wall or baseboard radiators and custom radiant applications, such as heated towel racks or snow melt.

Budget Backyard Family Vacations

When travel and lodging are cost prohibitive, you can still have a vacation right at home. Yes, in your own backyard. Many of us live within reasonable distance to museums, campgrounds, historic sites, and beautiful state parks. You might be surprised at what you find in your own local area.

Do some research in your area to find free or low cost activities and sites to visit. Schedule something for each day of the week, even if it’s just a park visit for a picnic. Some areas have local public beaches. Plan an outing at a local public beach. Visit historical sites. Many of these are free, educational, and fun for parents and kids.

You can even plan activities at home just as if you were at an exotic vacation spot. Have a different theme for each day. For example:

1. Beach day – sun tanning, volley ball, make some fancy icy drinks to sip on in the sun, have a picnic.

2. Camp day – stay in a tent or sleeping bags under the stars, build a little fire if allowed in your area, roast marshmallows, make smores, sing campfire songs.

3. Have a backyard fair – create booths with games like ring toss or balloon popping to win little prizes.

4. Colonial day – dress, and live in another era!. This is great fun. I thought of this one purely by accident when the electricity went out one day. The kids expressed how “neat’ it was to live like they did in the “old days.” No lighting except candles and lanterns, no T.V. or radio, no video games or computer. Sounds boring, but believe it or not, they had fun coming up with ideas to keep occupied. A good teaching tool too! Shhhhhhhh….. don’t tell the kids.

5. Cultural Day – Live, celebrate, dress, and eat as you learn about different cultures. Some examples might include an Irish, Native American, or Spanish Day. Another great learning experience. Try to include some ethnic games to make it even more fun and interesting.

These “theme days” at home will take some imagination and a little work, but will be loads of fun for everyone. Half the fun will be in the creation, so let everyone pitch in. With a little imagination and creativity you can have a wonderful vacation right in your own backyard. You may even have more fun than actually being in another part of the world!

Consider Debt Consolidation to Improve Your Credit Ratings

Being in debt is just a fact for many people. Statistic shows that over 40% American families spend more money that they earn and the average American household has nearly $10,000 in credit card debt. But it does not have to be a bad thing, even though you may have a bad credit history, debt consolidation may be a way for you to take charge of your credit.

Debt consolidation is a debt reduction process that allows you to combine your assorted unsecured debts such as credit card's debts into one payment. Instead of sending your credit card payment to 7 or 8 banks at different due schedule, you would make one payment to the debt consolidation company and that company will take care everything for you. Normally, the debt consolidation company will generally negotiate a reduced interest rate, a reduced balance, a lower monthly payment, eliminate late fees, and set a term when the debt will be paid off in full. This may save you large sums of money in the long run.

Before you decide to go for debt consolidation, you need to figure out how much you owe. You can know the total in debt by listing all creditors and how much you owe for each creditor. In addition, include the monthly payment due for each creditor. By assessing your debts, you will then be able to determine how much you owe and how much of a loan payment you can afford if you choose to consolidate.

Consolidating your debts is one of your options of eliminating your debt. By consolidate all your debts into one monthly payment will ease your debt management by focusing only on one payment instead of multiple payments with difference due schedule; this will help you to avoid miss payment or late payment to your creditors and help you to rebuild your good credit records and eventually improve your credit ratings.

You can consolidate your debt either with or without a debt consolidation loan. There are many reputable debt consolidation company specialize in managing all your debts without getting another loan. They will charge a fee for their services and in turn, they will negotiate with your creditors to have your interest rate lowered and they will take care of the payments you make every month.

You can also choose to consolidate your debt with a consolidation loan and if you own your own house, you can consider an equity loan using your home's appraised value and other equities to obtain the needed financing.

Just beware of debt consolidation scams, take your time to check out a few debt consolidation companies and give alert on the offers that are "too" good and guaranteed for everything. The best way to check the reputability of these debt consolidation companies is to check them with the Better Business Bureau at From they you will know how many complaints have been filed against these companies and for what reasons.

In Summary

Consolidating your debts will eventually lead to you having no debts at all and a better credit record. Once you have consolidated your debt into one payment, put your credit cards away, and do not take on any more credit. Remember, the purpose of you consolidate your debt is to reduce and eliminate your debt in the end and improve your credit ratings.

Bad Credit Home Purchase Loans – Should You Purchase A Home?

Today, those with damaged credit have more opportunities to borrow to buy a house than they have had in the past. There are many lenders that specialize in what is often referred to as a bad credit home purchase loan. However, as with many things in life, just because you can, doesn’t mean you should. Indeed, loan availability could be considered a small part of the decision of whether or not you should purchase a home at this time.

What You Can Do

To help you in deciding whether or not you should purchase a home, the first step should be to run the numbers to find out what type of mortgage rates you may be eligible for and how much it would cost you to buy now. It’s better to do this before speaking with any lender offering bad credit purchase loans.

The first number you’ll explore is your credit rating, using information from one or more of the major credit reporting agencies. Among the best known is Trans Union, Equifax, and Experian. Then, you’ll need to consider the loan-to-value ratio, or the relationship between how much you want to borrow and the worth of the house. Your debt-to-income ratio, or how much your total debts are in comparison with your current income, is another factor that will influence the type and rate of loan that is available to you.

What You Should Do

You can use the numbers you collected above to determine what terms and rates may generally apply to your financial situation and, with the help of a mortgage calculator, make an estimate of what a loan for a given amount will cost you monthly. There are a variety of other factors, such as points and closing costs that will affect that number, but for initial decision making as to whether or not you should purchase a home at this point in time, it is useful.

There are many lenders willing to offer you a loan, even if your monthly mortgage payment surpasses the 30% of your income that is typically recommended. That does not make it a good idea. There are other expenses involved in home ownership that you’ll need to factor in, such as repairs and maintenance. Buying too soon could place an undue and unnecessary financial on your shoulders.

Consider and compare the advantages to waiting. You’ll have time to shop for the best bad credit home purchase loan possible. You’ll be able to save for a bigger down payment and continue to improve your credit rating. All of these actions may translate into better rates and terms, which will allow you to pay less in the end.

100% Mortgage Financing – A Way To Avoid Private Mortgage Insurance

Ideally, traditional mortgage lenders want new home buyers to have a 20% down payment when purchasing a new home. Thus, if purchasing a $200,000 home, you should be prepared to have $40,000 as a down payment.

Unfortunately, many people do not have this kind of money lying around. For this matter, private mortgage insurance (PMI) was created as a way for mortgage companies to recoup their money if a homeowner defaults on the loan. There are various loans available to assist people with down payments. In some instances, homeowners can obtain 100% financing, and avoid PMI

What is Private Mortgage Insurance?

Because Americans are earning less money, and home prices are steadily increasing, the majority of the population is unable to save the recommended down payment of 20%. In order to make owning a home possible, mortgage companies created a particular mortgage insurance, (PMI), for people with less than 20% to put down on a home. This insurance protects the lender if you default on the mortgage.

How to Avoid Paying Private Mortgage Insurance

On average, PMI may increase your mortgage payment by $100 – sometimes less, sometimes more. However, there are ways to avoid paying this additional insurance. The obvious involves having at least 20% as a down payment. If this is not an option, homeowner may agree to a higher interest rate. Another tactic entails getting approved for 100% financing.

How Does 100% Mortgage Financing Work?

100% mortgage financing makes it possible to buy a home with no money down. Also referred to as a piggyback loan or 80/20 mortgage loan, 100% mortgage financing involves obtaining a first mortgage for 80% of the home cost, and a second mortgage, or home equity loan, for 20% of the home cost. Together, the first and second mortgage allows a home purchase with no money down, and no private mortgage insurance.

Developing a Successful Home Budget

This is probably the most requested topic that I receive, normally after someone gets a large unexpected expense, or they start thinking about retirement and realize that they have saved a woefully inadequate amount of money.

I recommend using a monthly time-frame to look at your cash inflows and outflows, because most bills are monthly and four weeks is a short planning period that most people can manage. The first thing to do is determine your monthly after-tax income. Usually, this is the amount of money from your paycheck that gets deposited into your checking account. If your income is variable, then use an average of the last three months. (Any savings account interest income would be a bonus.) Next, list out your fixed monthly expenses, such as rent, mortgage, car payment, phone, electric bill, etc. All of these numbers can be changed in the long-term, but first you need to determine a baseline budget of where you are right now.

Make sure you include all of your utilities; some are only paid quarterly or annually, like car insurance, the water bill, or an association fee. Take these expenses and calculate what they would be on a monthly basis. For example, if your water bill comes quarterly, divide it by 3. If you have semi-annual car insurance, then divide it by 6.

So now you have your fixed monthly income and your fixed monthly expenses. Deduct one from the other, and you have the variable amount of money that you are free to spend any way you want for the remainder of the month. From this remaining amount of money, start listing out your main categories of variable spending: groceries, entertainment, medical expenses, clothing, dry cleaning, personal care (haircut, nails, etc.), and gifts. Take each of these variable expenses and put an amount next to them that you think represents your average monthly spending for that category.

Make as many subcategories as you need to make an accurate estimate. The more precise it is for your spending habits, the more effective it will be for you. For example, food can be broken down by grocery store/fast food/dining out/work lunch/etc. Then go through the last few months of your checkbook and credit card statement looking for any spending that hasn’t been covered so far that you need to include for your situation.

Now you should have a total number for your monthly income, total monthly fixed expenses, and total monthly variable expenses. The moment of truth is when you deduct the two expenses from your income to see if there is anything left over. Don’t panic if it is a negative number – it is far better to discover this out now, rather than building up credit card debt later. Most people comment somewhere along this process, “Oh, so that is where my money is going. I had no idea I spent so much on that!”

Seeing all the numbers in black & white can help you prioritize (and negotiate with all the other spenders in the family). From this beginning budget, you can start to set monthly targets for spending categories, you can focus on reducing the largest expenses, and find areas where you should start doing some price-comparison shopping. And did I mention that saving a 5-15% of your income should be an additional fixed expense? Yes, you need to pay yourself first!

Having a budget is the critical first tool in managing your money. Wielding this tool allows you to finally start making financial decisions based on the facts instead of fiction. You can plan for expenses instead of being caught by surprise. And most importantly, figure out how to move forward with goals like a big vacation, a new car, or investing.

Being Informed About Debt Consolidation Loans is the First Step Towards a Best Deal.

Though online loans brought in convenience to borrowers, trusting a particular lender for his services was made far more difficult. Having to deal with a virtual person through ones computer left little of personal bonding between lenders and borrowers.

This rightly applies to debt consolidation loans. Personal advice becomes important on several occasions. For instance, before selling a particular debt consolidation loan, the borrower needs to be assured that this is the best option that can be used with his kind of circumstances (every individual feels that his is the case that is unique, though it may not be true in most of the cases). Before online debt consolidation loans came into the scene, it was the banker or his representative who would deal with customer queries. Now, borrowers have to depend on magazines and independent financial advisors.

While magazines and journals are a very good source of information, they provide generalised information, and not information that suits the particular set of circumstances. Independent financial advisors are also not able to fill in the space of the personal advisor. They charge certain fees for their services. In addition, they are not easily available.

Lenders must be requested to clear your doubts regarding debt consolidation loans before accepting it. Most lenders have employed experts from the field of finance to deal with customer queries. Having a clear concept of how a debt consolidation loan improves your financial condition will be the basic step in the loan process. With debts already making your life difficult, a bad deal debt consolidation loan will be a double whammy for you.

Consequently, a proper groundwork must precede any decision on debt consolidation loans. The easiest method of gaining information about debt consolidation loan from several loan providers is through debt consolidation loan quote. One has to simply fill in the quote form, and quotes by several lenders appear in a minimal time of an hour. Loan quote gives information about the rate of interest, term of repayment and other important terms of the debt consolidation loan. The method suffers from two drawbacks:
· The loan quote does not list all costs that are later added to the debt consolidation loan.
· The loan provider does not promise to lend for debt consolidation on similar terms.
However, loan quote is good to get an idea of terms on which debt consolidation loan is offered. As mentioned above, a borrower cannot demand debt consolidation loan on terms mentioned in loan quote, unless there is a clause stating otherwise.
Debt consolidation loans are offered for a range of periods. The period forms the term of repayment of the debt consolidation loans. Though paying through monthly instalments is an age-old method, it has not lost its importance. Having to pay only a part of the total cost every month is relatively easier. Additionally the repayable debt lessens with every repayment. Another method of repayment, termed as the interest only method, also lessens the monthly repayments but the final amount repayable at the end of the term is very high. This is because only interest is repayable monthly.

The use of debt consolidation loans must be made sparingly. Many a times, borrowers begin using debt consolidation loans as a pretext for spending more. Lenders do not approve of a frequent use of debt consolidation loans. Failure to pay debt consolidation loan will start repossession proceedings to recover the unpaid amount.

Therefore, debt consolidation loans must be used with caution. Tendency to spend more than what one brings as revenue must be curbed. If necessary new sources of income must be devised to meet the excess expenditure. Above all, debts must be catered to immediately after it has been incurred. Immediate decision must be made about the method of dealing with the debt by taking into consideration the size of debts and ones own capability to meet the debt. Only if needs be, debt consolidation loan must be resorted to.