An honest answer

Is an IVA Worth It?

It can be a genuine lifeline, or the wrong move that costs you more. Whether an IVA is worth it comes down to your circumstances. Here is the honest version, so you can judge for yourself.

The honest answer

It Depends, Here Is on What

An IVA can be worth it if you have a fair amount of unsecured debt, a steady income, and enough spare each month to make a meaningful payment. In that situation it brings real relief: the interest stops, the calls stop, and there is a clear finish line with the rest written off.

It is often not worth it if your debts are small, you can only spare a little each month, your income is mainly benefits, or a Debt Relief Order would clear your debts far more cheaply. The fees and the six-year credit impact can make an IVA the wrong tool in those cases. A significant number of IVAs also fail, so the payment you agree to has to be one you can sustain even when money is tight.

More Likely Worth It If

  • You have a fair amount of unsecured debt across more than one creditor.
  • You have a steady income and can afford a regular payment.
  • You want creditors legally bound and to avoid bankruptcy.

Probably Not Worth It If

  • Your debts are low, where the fees make it poor value.
  • You can only afford very little, or your income is mainly benefits.
  • A Debt Relief Order would clear your debts more cheaply.

The Bottom Line

An IVA is worth it for the right person in the right circumstances, and a costly mistake for the wrong one. The only way to know which you are is to compare it honestly against the alternatives, a DRO, a DMP, bankruptcy or simply a repayment plan, ideally with a free, impartial adviser. That comparison costs you nothing and could save you a great deal.

No pressure, no obligation

Find Out If It Is Worth It for You

Answer a few quick questions and an advisor will give you an honest steer, then go through every option, not just an IVA.

Check your options →

Get Free, Impartial Advice Before You Decide

You never have to pay anyone to understand your options. These services are free, independent and will go through every route with you.

Related guides

Keep Reading