In the current climate of the credit crunch and higher interest rates, it is predicted that 2008 will see record numbers being declared bankrupt. Many are seeing the arrangement of an IVA as a means by which to pay back their unsecured debts. An IVA is often considered the best way for those in financial strife to avoid bankruptcy and the inevitable issues that go hand in hand with it.

IVA – Why Does The UK Have So Much Debt?

Generally speaking, the reason that the UK can be seen to be in the position of having the highest national debt in Western Europe is home ownership. The UK housing market is notoriously expensive but it is entrenched in our culture that owning our own home is the done thing. In the rest of Europe, this is unlikely to be the case, with many couples continuing to rent into old age. This produces a massive financial burden and the inevitable consequence of this is people being unable to pay their debts. When the threat of bankruptcy emerges, most will opt for an IVA (individual voluntary arrangement) as this is a legally binding contract that offers many benefits that cannot be found in a debt management plan.

IVA – Safe As Houses?

Whilst it is true that the restrictive housing market, which some analysts suggest is over-valued by as much as 30%, is causing much of the financial debt in the UK, it is also what most people use to provide their financial security. When financial breaking point hits, however, those wishing to avoid the pitfall of bankruptcy will opt for the structure offered by an IVA which, upon successful completion, will see them completely free from debt.

IVA – Contributory Factors

It is, of course, narrow minded to blame all of the UK's debt woes on the housing market. A startling statistic shows that the UK has more credit cards than the rest of Europe combined. As such, the unsecured debt of the UK spirals out of control and leaves many on the brink of insolvency. Taking out an IVA has seen a large proportion of those in financial difficulty manage to regain their footing and avoid the stress of repossession, bankruptcy and being credit black-listed.

Talk To Varden Nuttall About 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 0800 031 9802 or fill in our online enquiry form.