There are both long and short-term answers to this question. In the short-term, an IVA negatively affects your credit rating for six years. Although if you are in the position that an IVA is an option, then it’s likely that your credit rating isn’t amazing, and you really shouldn’t be looking to get further credit anyway. An IVA can help reduce the stress and anxiety that comes with worrying about debt.
During an IVA you will be on a strict, but affordable, budget. This ensures that you pay back the agreed amount to your creditors. Therefore your lifestyle may be altered due to spending less, but this isn’t necessarily a bad thing.
In the long-term an IVA can help you get back on track financially and, after six years, you can begin rebuilding your credit rating without the worry of unpaid debts.
Entering, and completing, an IVA can be a life-changing event. It allows you to have a fresh start financially, and can have a positive affect on you health and mental wellbeing.