Individual voluntary arrangements (IVAs) can offer a debt-free future but are not a quick-fix solution, according to a financial expert.
Introduced as an alternative to bankruptcy, the Iva has become increasingly popular with consumers facing debt problems.
Under the terms of an IVA, an agreement is arranged between the debtor and the creditors to make reduced payments of the debt in order to pay of a percentage of what is owed over five years. After five years, the debt is classified as settled.
Website Thrifty Scot said: "Although Ivas should not be taken lightly and should be given careful consideration before you embark on this scheme, they can suit some people who have very little hope of repaying their debts through another solution."
To enter into the IVA process, an insolvency practitioner must agree that it is the best solution for both the debtor and their creditors.
