It’s not just the morning after the night before – debt problems don’t go away like the effects of over-drinking. But an IVA can help Christmas bingers avoid a debt hangover.
Millions of Britons will have woken up on New Years day with a definite feeling that they overdid it the night – or even over the weeks – before.
But it's not just their health they'll have been concerned about. The UK indulged in its usual Christmas overspending binge in 2007, and that's why record numbers of people are expected to apply for an individual voluntary arrangement (IVA) early in 2008 to help get rid of their New Year's debt hangover.
Thousands will turn to IVA or bankruptcy
Sadly, debt problems don't wear off like the effects of a real hangover. A record 120,000 people are expected to turn to an IVA or the sinister alternative, bankruptcy, in 2008. And the IVA could be the Alka-Seltzer for many: the product that finally relieves the stress, financial restriction and physical health problems that form the classic symptoms of indebtedness.
An IVA can prove to be tough medicine. It demands discipline to keep up the agreed repayments: discipline which can sometimes hurt. But keeping to the agreement can allow you to repay only a part of the debt (a record £1.3 billion pounds of debt was written off in 2007 by creditors agreeing to the IVA requests of their debtors).
The IVA: root canal surgery
Sticking to the discipline of repayments can also engender good financial habits for the future. Other debt ‘medicines' like consolidation loans are effectively only panaceas – they can seem to sooth the symptoms, but don't address the heart of the problem. Website moneysupermarket.com found that 66 per cent of people were unable to stop themselves sliding back into debt after taking out a debt consolidation loan.
Sticking to the terms of an IVA can get to the root of the issue. It wipes the slate clean – but perhaps more importantly helps many people learn to manage their finances effectively.
The IVA could put an end to debt hangovers for good.
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.