The current credit crisis that is prevalent in the UK is affecting the finances of many consumers up and down the country and the expense of holidays is creating one of the biggest financial deficits. Holidays in themselves are an expensive outlay but experts are warning that money is being wasted unnecessarily in the form of novelty purchases whilst on holiday. An individual voluntary arrangement (IVA) is increasingly being employed by those in debt to tackle their financial problems and return themselves to a firmer financial footing.

IVA – Avoiding Unnecessary Purchases

It goes without saying that the best way to avoid entering financial strife is to live within your means and not purchase things that cannot be afforded. This applies to when you're on holiday as well but research conducted by Cahoot found that a third of holidaymakers feel they have spent money unnecessarily whilst away and that these purchases have added to their debt management burden. For those who find that their debts have become unmanageable, many will see an IVA as the ideal means by which to regain financial freedom as it sets out a legally binding repayment plan that will be at a level that is financially viable and which avoids the various negative implications associated with bankruptcy.

IVA – One Man's Junk

The research carried out by Cahoot discovered that just some of the frivolous purchases made by Brits abroad include sombreros, straw donkeys, handbags and various unnecessary buys. The study found that 16% of these purchases were paid for on credit card which would need to be paid off upon their return home. In the current economic climate, experts are stating that belts should be considerably tightened and avoiding such needless purchases is a good way to start. If finance arrears have become unsustainable, many consumers in the UK will opt for an individual voluntary arrangement (IVA) to help sort out their financial woes. Matthew Timms, Director of Cahoot, stated, "Holidays are all about fun and splashing out, but as our research shows it is still important to keep a close check on your finances when you are taking a break."

IVA Solutions with Varden Nuttall

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.