Many high ranking officials with the UK government have asserted their belief that the sub-prime lending market in the USA is the sole reason for the current credit crunch in our country. However, financial experts from across the Atlantic dispute this claim and believe that the UK needs to take responsibility for its own situation. The debt situation threatens many people across the UK with insolvency or bankruptcy but many in debt are finding that an IVA can remedy their debt problems.

IVA – A debt solution

The credit crunch has had a profound effect on the finances on many people up and down the country but is the American sub-prime lending collapse the root cause of the problems we are experiencing? Well, in short, no, seemingly not. Speaking to the BBC, Irwin Stelzer, an American financial expert stated, "After taking credit for ten years of growth as if it was home grown and had nothing to do with the world economy, you have Gordon Brown and Alistair Darling saying all the problems come from America". Whilst there is a dispute about the causes of the financial crisis in the UK, many financial experts agree that an IVA is the best way to tackle debt. An individual voluntary arrangement (IVA) is a legally binding contract between creditors and their debtors which will see them pay off their debts in a time specific and structured manner that is affordable to them.

IVA – Staying on top of finances

Of course, it goes without saying that the best way to avoid the threat of insolvency and bankruptcy is to not financially overstretch yourself and live within your means. Unfortunately, numerous factors such as increased living costs make this extremely difficult and many will choose to use an IVA scheme to help alleviate their debts. It is indeed narrow minded to lay the blame for our monetary woes squarely at the feet of the USA and there is a need to address both the irresponsible lending and spending that is prevalent in the UK.

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.