Question 1

What is an IVA?

Accepted Answer

An IVA is a formal agreement allowing you to make affordable monthly payments for 5–6 years, with remaining eligible debt written off at the end.

Question 2

Who qualifies for an IVA?

Accepted Answer

Generally those owing £6,000+ to two or more creditors, with a regular income, and unable to meet current repayments.

Question 3

Will interest stop in an IVA?

Accepted Answer

Yes. All interest and charges must stop once the IVA is approved.

Question 4

Does an IVA affect my home?

Accepted Answer

Homeowners may be asked to release equity in year five. If not possible, the IVA may extend by 12 months instead.

Question 5

What is a DMP?

Accepted Answer

A DMP is an informal agreement to pay reduced, affordable monthly payments. Interest may stop but is not guaranteed.

Question 6

How long does a DMP last?

Accepted Answer

It varies depending on total debt and affordability. Some last one year, others several years.

Question 7

Will a DMP affect my credit file?

Accepted Answer

Yes. Reduced payments appear as payment markers.

Question 8

Can creditors still contact me?

Accepted Answer

They can, although many reduce contact if they accept the plan.

Question 9

What is a DRO?

Accepted Answer

A 12-month insolvency solution for people with low income, low assets, and debts under £30,000. Remaining debt is written off after 12 months.

Question 10

Do I qualify for a DRO?

Accepted Answer

You may qualify if you have under £75 spare per month, low assets, and rents your home.

Question 11

Can creditors chase me during a DRO?

Accepted Answer

No. All collection activity must stop once the DRO is approved.

Question 12

How will an IVA or DRO affect my credit score?

Accepted Answer

They appear on your credit file for six years.

Question 13

Can I rebuild my credit?

Accepted Answer

Yes—by paying bills on time, using credit responsibly and checking your report regularly.

Question 14

Will YourFinances tools affect my score?

Accepted Answer

No. They use soft assessments that don't appear on your credit file.

Question 15

Do you provide financial advice?

Accepted Answer

No. We offer information-only tools. Regulated advice comes from FCA-authorised partners.

Question 16

Is your service free?

Accepted Answer

Yes. All tools, calculators and letters are free.

Question 17

What happens after completing the Debt Assessment?

Accepted Answer

You receive a personalised breakdown of affordability and potential debt solutions.

Question 18

Can creditor phone calls be stopped?

Accepted Answer

Yes. Vulnerability disclosures and FCA CONC rules allow you to request reduced or written-only contact.

Question 19

Can I ask lenders to freeze interest?

Accepted Answer

Yes. Under FCA rules, firms must consider freezing or reducing interest when appropriate.

Question 20

What if a debt is not mine?

Accepted Answer

You can request evidence and pause action while it's investigated.

Question 21

What if debt is affecting my mental health?

Accepted Answer

You can make a vulnerability disclosure. Lenders must apply extra care.

Question 22

Can debt be written off without an IVA?

Accepted Answer

Sometimes—creditors may write off debt due to vulnerability or long-term illness.

Frequently Asked Questions

IVA (Individual Voluntary Arrangements)

Debt Management Plans (DMPs)

Debt Relief Orders (DROs)

Credit Impact & Rebuilding

Using YourFinances.co.uk

General Debt Help

Helpful Guides & Tools

Success Stories

Credit Report Guide

Credit Myths Debunked

Lender Timeline

Bank Accounts for Bad Credit

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