Food, which is, of course, a basic need is also starting to create a debt management nightmare for consumers. Food bills have shot up 15% in a year and many will utilise an IVA to tackle their financial problems head on.
There are a combination of factors that are contributing to the debt crisis that currently grips the UK. The demise of the economic and housing markets are certainly having a profound effect on debt management ability but in terms of day to day living, one of the biggest debt implications is resulting from soaring living costs, especially the cost of food. Many consumers who are already experiencing financial strife are finding their ability to make ends meet increasingly inhibited by price increases and large numbers will make use of an individual voluntary arrangement (IVA) in 2008 to ensure their financial futures aren't blighted by bankruptcy or insolvency.
IVA – Eating Into Consumer Finances
According to a report in the Metro, the cost of annual food bills has rocketed 15% in the last 12 months as a result of inflation and demand for produce. This has undoubtedly hit consumers in the wallet and belts will need to be significantly tightened for many to avoid falling into insurmountable debt management problems. For those who are faced with bankruptcy, however, financial futures can look particularly bleak. Many financial specialists, however, point to an individual voluntary arrangement (IVA) as being a successful means of alleviating debts. An IVA structures debts and creates a proposal that is manageable to the individual concerned.
IVA – Swallowing Debt
According to research carried out by MySupermarket.co.uk, found that the average customer spending £100 a week on groceries could now expect to spend an additional £780 per year on the food shopping. When coupled with factors such as mortgage price hikes and soaring utility bills, it is becoming harder and harder for people to steer clear of debt. With bankruptcies predicted to reach record levels in 2008, many who are in inextricably in the red will opt to use an individual voluntary arrangement (IVA) to get a grip on the outgoings and create a plan to pay back their creditors.
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.