Those who are already financially floundering have been dealt another blow with the news that banks are now rejecting 18,000 credit applications a day. Many will use an IVA to help them tackle debt problems.
The extent of the debt management problem in the UK is reaching unprecedented levels amidst reports that as many as 18,000 credit card applications are being turned down each day. According to a report in the Telegraph, one in fourteen people, or 3.24 million adults, have had a request for a credit card turned down in the last 6 months. This is leading many down a road into irrevocable debt and large numbers will utilise an individual voluntary arrangement (IVA) during 2008 when their debt problems become to acute.
IVA – The Dearth of Credit
When it comes to debt management, the fact that easy access to credit, which may well have been the cause in the first place, is making it extremely difficult for those struggling with arrears to make financial ends meet each month. Most financial experts are predicting that insolvencies and bankruptcies will reach record highs in 2008 which is why many who are saddled with debt will decide to utilise an individual voluntary arrangement (IVA) to help them from their monetary predicament. According to the report in the Telegraph, the inability to acquire credit is sure to have a profound effect on the debt management plans of those in arrears. Speaking to the Telegraph, financial expert Sean Gardener states, "For years borrowers have had the upper hand in the credit card game but the rules have now changed. People with debts who thought they could keep shuffling their cards to stay ahead are now running into trouble."
IVA – Breaking Free From The Shackles Of Debt
Individual voluntary arrangements (IVA) are expected to be employed in record numbers during 2008 as consumers and homeowners try to tighten their financial belts and get on top of their arrears. An IVA is a legally binding agreement which writes off a percentage of an individual's debt and formulates a mutually agreeable plan between creditor and debtor to pay back what is owed at a financially viable level. Financial expert, Sean Gardener, states to the Telegraph, "Given the turmoil in the mortgage markets the options are running out for people with problem debts. They need to take control of their borrowing and crucially to reduce their debts."
Speak to Varden Nuttall About An IVA
Varden Nuttall has been established for over 15 years and is dedicated to helping people in financial difficulty find a debt management solution through an Individual Voluntary Arrangement (IVA). Employing 90 people, including trained and skilled IVA administrators, we are one of the largest IVA companies in the UK and handle over 3% of all IVA applications. To find out more about the company, or to make an appointment to talk about putting an IVA in place, call us today on 0870 977 8100 or fill in our online enquiry form.