Thinking About an IVA? Pause Before You Sign

When debt feels overwhelming, an Individual Voluntary Arrangement, or IVA, can sound like a solution. It may be right for some people, but it is not right for everyone. Before you agree to anything, it is important to get free and independent debt advice.

MaPS MoneyView Wales 2025 found that 13% of adults in Wales have strong indications of needing debt advice, with a further 20% at risk of needing debt advice. If you are struggling, you are not alone – and you do not have to make decisions under pressure.

Know what an IVA means

An IVA is a formal, legally binding debt solution. It can affect your credit file and may involve fees. It can also fail if payments become unaffordable. That is why it is important to understand the risks as well as the benefits.

Look at all your options

Depending on your situation, other options may be more suitable. These could include a Debt Management Plan, Debt Relief Order, breathing space, bankruptcy, or informal arrangements with creditors. The right option depends on your income, debts, assets, and what you can realistically afford.

Do not be rushed

Be careful if a company pushes you to sign quickly or makes an IVA sound like the only answer. Take time to ask questions. Check who is giving the advice and whether there are fees.

Put priority bills first

Rent, mortgage, council tax, energy, food and essential travel should come before unsecured debts. If you are already missing priority bills, get advice as soon as possible.

A credit union cannot replace professional debt advice, but it can be part of a safer financial future once you have a plan. The first step is speaking to a trusted adviser before making any commitment.