People taking out IVAs are far from being alone – cases for the individual voluntary arrangements have soared by two-thirds since December 2007.
Anyone considering taking out an individual voluntary arrangement (IVA) can take heart from the fact that they are far from being alone. Recent statistics show that the number of IVAs taken out has surged by 67 per cent from December 2007's figures as Britons struggle to cope with their avalanche of debt.
The rise in IVAs means that five people took out an IVA in January 2008 for every three people who did the same in the previous month. And Christmas has been blamed as the biggest factor behind the increase.
Christmas blamed for IVA increase
The number of people turning to IVAs has been widely forecast to rise for some months, especially after the news that most people in the UK who borrowed to pay for Christmas 2006 still had debt outstanding a year later. Christmas 2007 was bound to be the straw that broke the camels back for many people.
However, the news that IVAs have risen so sharply is bound to cause concern for the government. While the Bank of England reduced interest rates in December but little if any of the borrowing misery was eased for consumers as most banks and building societies failed to pass rate cuts on to borrowers.
Inflation set to squeeze families further
Rising food and fuel costs are increasing inflationary pressures across all sectors of the economy – and piling more financial pressure onto people with little money to spare once the bills have been paid.
According to property and finance website IVA.com the average amount owed by someone applying for an IVA in 2007 was just over £50,000. That amount was expected to increase significantly in 2008 – and the news about the huge spike in IVA numbers is sure to see that figure revised further upwards in the days and weeks to come.
Talk to Varden Nuttall about an IVA
Varden Nuttall has been established for more than 15 years and is dedicated to helping people in financial difficulty find a debt management solution through an IVA. We employ 90 people, including trained and skilled IVA administrators, and are one of the largest IVA companies in the UK, where we handle more than three per cent of all individual voluntary arrangement 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 0800 031 9802 or fill in our online enquiry form.