The Daily Mail reported recently that the amount the average Brit was in debt by is £33,000. And it's not just the stereotype of students or failed business entrepreneurs who are seeking out an IVA. Families are twice more deeply in debt than they were seven years ago.

IVA – a family affair

Although recent insolvency figures show there has been a dip in IVA applications, this brief slump has been dubbed the calm before the storm. Credit cards, store cards, inflated property prices and the high cost of debt have drip fed into every bank account in the UK, taking a heavy toll. The kinds of people seeking out an IVA therefore are from all walks of life and all economic classes. The Ed Mitchell story, where a former ITN newsreader went from a six figure salary to sleeping on a park bench, illustrates there is a new breed of homeless people, dubbed ‘white collar tramps'. This scenario was unthinkable a few decades ago, but the prevalence of debt in recent years means the number of people going insolvent, requesting an IVA or becoming bankrupt is set to soar.

Why middle England needs an IVA

The rise of the IVA throughout all sectors of society has been blamed largely on the spiralling house prices and massive mortgages families now take on board, making it harder and harder to stay solvent. Experts warn the global credit crunch will mean that the number of people seeking an IVA will only get worse. However, obtaining an IVA will be harder than ever as banks have redrawn their lending rules, making it harder for those with big debts to borrow any more.

Families resort to an IVA

Families tend to be harder hit when it comes to money and debt too thanks to the demands and peer pressure many experience. Christmas, birthdays, family holidays and general day to day living costs on top of high mortgage repayments can be enough to push many into a vicious circle of debt. Taking out an IVA may be the best debt solution for many, especially as its expected that banks will turn down an increasing number of people applying for loans, overdraft extensions or credit cards.

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 0800 031 9802 or fill in our online enquiry form.