5 Helpful Things To Consider When Your IVA Ends

When you enter into an Individual Voluntary Arrangement (IVA), you must make monthly payments towards your debts for the agreed term. But what happens once you have made your last payment? Your Insolvency Practitioner will confirm that you have made all of your payments and you will be issued with an IVA completion certificate. You are now debt free and you can move forward with a clean slate. However, an IVA has an impact on your credit score and your financial future, so there are certain things you should consider doing after making your final payment. Here are 5 helpful things to consider when your IVA ends.

1. Keep budgeting

It is likely that the reason you entered into an IVA in the first place is because you were unable to manage your debts. Now that you are debt-free, it is important that you avoid getting into the same situation again. You will have been used to managing your finances within a budget whilst on your IVA; maintaining this once your IVA ends will help you manage your money well and improve your finances.

The additional money that was being paid into your IVA can now be put aside for savings and emergencies. By building a savings pot, you protect yourself against financial emergencies and avoid situations where you are forced to borrow the money you cannot afford to repay.

2. Open a high-interest savings account or ISA

Now that you are more financially stable, you should consider putting money away for the future. Opening a high-interest savings account or an ISA is the best way to do this.

The main benefit of an ISA is that you won’t pay tax on the interest that you earn. However, there are limits on how much you can save each year and you may not be able to access the money right away (depending upon the ISA you take). A savings account, on the other hand, can give you more flexibility. Make sure you choose the type of account that suits your needs.

3. Consider further credit

Once you have completed your IVA, the debts that were included will have been settled. You may be wary about taking any further credit as you don’t want to get into a bad debt situation again. However, if you want to improve your credit score, using credit responsibly is a great way to do it. 

Using a credit card regularly, and in the right way, is one of the most effective ways to build credit again. There are a lot of credit cards available. You may not be able to access credit cards with the lowest rates, however as long as you use the credit sparingly, for small purchases, and make the repayments when they are due then the interest you will pay will be minimal. Creditors will then be able to see that you can maintain payments regularly, and this will help to boost your credit score. 

4. Monitor your credit report

Keeping a close eye on your credit report is beneficial to ensure that it is accurate, to keep you aware of your total credit and monitor for improvements. The 3 main agencies that generate credit reports are:

• Experian
• Equifax
• TransUnion

You can access your credit report by contacting these companies directly. Sometimes you are required to sign up for a paid monthly subscription to access your full credit report, however, there are many companies out there that allow you to access a summary of your credit information for free – search online for ‘free credit reporting’ to find one that suits you. 

Once the IVA is completed, your details will be removed from the Individual Insolvency Register after three months. Details of the IVA will be held on your credit file for six years from the date that the IVA starts. If you receive your credit report and your IVA has not been removed yet, you need to contact the credit agency to rectify it. Sometimes, details are not updated properly and the IVA remains on your report when it shouldn’t. If you send them your IVA completion certificate, they will fix the problem for you.

Check the reports for other errors and discrepancies too. For example, debts can be left on your report even though they have been paid off during the IVA. If there is anything that doesn’t look right, query it with the credit reporting agency and get it corrected. Mistakes like this are more common than you think and they can negatively impact your credit report, so always check your credit reports carefully.

5. Register to vote

If you are not already registered to vote, you should do it right away because it instantly boosts your credit score. When you register to vote, details like your name and address are recorded on your credit report. Having these updated details makes it easier for the credit reporting agency to identify you and your score will increase as a result.

While this won’t fix your credit score overnight, it is a quick and easy way to boost it a little before you start using long-term strategies to improve your credit. You can register to vote online here and it only takes five minutes.

Need more IVA advice? Contact us today

If you have more questions about what to do at the end of your IVA, or you are struggling with debt and wondering whether it could be the right solution for you, we can offer the IVA help you need. At Swift Debt Help, we have a wealth of experience helping people manage their debt problems and unlock their financial future. Get in touch today and a member of our knowledgeable team will answer any questions you have.