As a creditor, one of the most difficult things to do is debt recovery. People find it very easy to borrow money but paying it back and schedule is usually problematic. The solution to this is not just trying to get bigger collateral for monies borrowed. Doing this would scare away borrowers, especially those who don’t have the kind of collateral you are asking for. It is important therefore, to know how to get the best solution to this menace. The quantity of bad debts is going higher by the day in the UK. So, you need to find a way to encourage people to borrow from you but at the same time, know how to make repayment seamless for you and convenient for the borrower. For this to happen, you need the services of past due credit solutions.
The Debt Recovery Service Of Past Due Credit
Past due Credit Solutions Limited is a highly reputable company when it comes to debt recovery services. One of the major tools they utilize to help their clients recover their money with interest is IVA. Individual Voluntary Agreement, popularly called IVA, is a legally recognized structure for debt recovery in the UK. The following are elements of IVA that makes it perfect for debt recovery efforts.
• It is legally binding. Once a debtor agrees to an IVA, they put themselves under strict legal conditions. This helps in the recovery effort immensely and default rate in IVA is very low.
• It is realistic. Another reason why IVA is perfect for debt recovery is that it is realistic. This is very important because many debtors cannot pay back not because they don’t want to pay back, but because the terms are not realistic. With IVA, debtors only pay a certain amount every month which is usually very convenient for them.
IVA is highly motivating for the debtor and that is why past due credit utilizes it. IVA is usually for 5 years and while the debtor is servicing the debt, they cannot take on another debt. Many debtors are motivated to cut short the time so they can be free to secure another loan. To get more information visit #past due credit solutions.
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