For most applicants, getting a loan to combine all your debts into one will work very well. For a few others doing it without professional guidance can have serious consequences. Before you can decide if this is the right path for you, you need to understand exactly what this involves and whether it will integrate well into your own situation. If for instance, you have a small business and switch to using a virtual office instead of paying high rent for conventional office space, this would be a good start. This is something you can discuss with your IVA advisor. In many instances this can involve taking out a second mortgage on your home, although people with extremely good credit can get a personal loan without collateral.

For those with fair or poor credit, an unsecured loan will be very difficult to obtain depending on your employment history and salary plus your past credit activity. The danger of course is that should you default on this loan, you could lose your home and end up living in your car. By initiating an IVA you will be forced to take into account the solidity of your future regarding your current and future health prospects, the security of your job and if you covered in case of other unforeseen events such as a natural disaster. With expert advice and guidance you will be able to set a course that will steer you and your family back to financial health and future happiness.