Once your IVA debt or Trust Deed tenure comes to an end, you will be free from all your past debt. Any amounts over and above the settlement amount post this tenure; will be legally written off. You will receive a letter from your designated Insolvency Practitioner that will state that you have satisfied all your debts. Your creditors cannot harass you for any remaining amount thereafter. Now that the huge load of unpaid debt is off your shoulders, it’s time to manage your finances better, so that you never land yourself in the same situation again.
As your credit rating might have taken a hit during the tenure of your IVA or Trust Deed, you must work towards building your credit ratings to improve your chances of getting credit in future. You can opt for credit cards that help you build your credit rating and prepaid cards in order to boost your rating. You must keep your bank accounts in good shape and if you have an overdraft facility, keep it in check. These small steps will make a huge difference in ensuring that the credit agencies see a hope for redemption in your case. Also, check with the credit agencies in your country to see if your credit file is updated post your IVA or Trust Deed period.
Now that the old debts have been paid off, it’s very crucial to manage your finances well. You must save as much as you can and control your expenditures. Throughout the duration of your IVA or Trust Deed, you managed to keep your expenses under check and you must continue to do so, thereafter as well. The savings you make will ensure that you don’t need any credit facilities in the future. Also, keep your future credit needs in check and take credit only when you really require it and are in a good financial standing to settle your debt, without any hassles.