IVA Impact on Credit Score
Concerned about your credit rating after entering an IVA? This guide explains what to expect and how to take control of your financial future.
April 8, 2025
At Advice Centre Group, we understand that dealing with debt can feel overwhelming. If you’re struggling with debt, a Debt Management Plan (DMP) might be the solution you’re looking for.
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What is a Debt Management Plan?
A Debt Management Plan is an informal arrangement between you and your creditors to repay your debts at a rate you can afford. Key features include:
- A single monthly payment that gets distributed among your creditors
- Reduced monthly payments based on what you can realistically afford
- Flexibility to adjust payments if your circumstances change
- Professional support from a debt management company or charity
Is a DMP Right for You?
Our experienced advisers at Advice Centre Group will carefully assess your situation to determine if a DMP is suitable. You might be eligible if:
- You have regular income to make monthly payments
- You’re struggling with unsecured debts like credit cards and personal loans
- You can afford to make regular payments after paying essential bills.
- You need professional support to manage your creditors
DMPs Usually Won't Work If:
- You have mainly priority debts (mortgage, rent, council tax, utilities)
- You have no regular income
- You can’t afford any monthly payments
- Your debts are primarily secured loans
- You’re facing legal action from creditors
Pros and Cons of a DMP
Advantages
- Single affordable monthly payment
- Professional support and guidance
- No legal process involved
- Creditors may freeze interest and charges
- Stops most creditor contact
- More flexible than formal solutions
- No impact on your job or professional status
- Can be cancelled at any time
- Helps you develop better money management skills
Disadvantages
- Not legally binding – creditors can still take action
- Interest and charges may continue
- Takes longer to repay debts
- Affects your credit rating
- There is no obligation for any creditor to agree to the plan.
- Some fees may apply (if using a commercial provider)
- We have helped over 11,300+ people in managing their debt and guiding them toward financial wellbeing
- We focus on finding the right solution for your situation
- We provide personalised service tailored to your specific needs
- Our team handles all professional creditor negotiations
- You’ll receive comprehensive support throughout your journey
Hear From Jude
Absolutely amazing customer service! The three gentlemen who helps me through my stress and anxiety are so lovely and very helpful and put my mind at ease no matter what the question was or how annoying I was being. Genuinely would recommend if you are really struggling to seek advice from these amazing and kind people. Thank you so much again for everything!!
Name changed for Privacy.
Take the first step toward financial peace of mind today
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Learn more about managing your debt:
Debt Relief Order
A Debt Relief Order is a formal debt solution for individuals with low income, minimal assets, and relatively low debt levels.
February 24, 2025
Debt Management Plan – (DMP)
A Debt Management Plan is an informal arrangement between you and your creditors to repay your debts at a rate you can afford.
February 21, 2025
Call us – 0161 768 8403
Email us – Enquiries@advicecentregroup.co.uk
You can visit the Money Helper website to find out more about managing your money and to get free advice, they are an independent service set up to help people manage their money
Advice Centre Group Ltd registered in England and Wales (14322979). Registered office: Second Floor A, Cheadle Place, Cheadle, Cheshire, England, SK8 2JX.
Adam Southard is authorised as a Licensed Insolvency Practitioner in the United Kingdom by the Insolvency Practitioners Association, We only provide advice after completing or receiving an initial fact find where the individual(s) concerned meet the criteria for one of our insolvency solutions, therefore, all advice regarding Individual Voluntary Arrangements (IVA) is given in reasonable contemplation of an insolvency appointment.
Adam Southard is licensed to act as an Insolvency Practitioner in the UK by the Insolvency Practitioners Association. Office Holder No. 11930
Insolvency Practitioner Directory- Insolvency Practitioner Details (bis.gov.uk)
What you need to know about Individual Voluntary Arrangements
(Insolvency Service)
We provide solutions to individuals throughout the UK, We Will help recommend solutions available to your circumstances in which you can then make an informed decision about which solution you qualify for is best for you and your circumstances.