University is seen as a necessity for more and more young people in the UK but the level of debt that they emerge with after completing their studies is often crippling. Many will opt for an IVA to avoid being declared bankrupt.
The government continually tell us that we need to invest in our young but little do our young realise how much they'll invest during the course of their university studies. It is estimated that after a 3 year course, the average student will have accumulated £20,000 of debt, predominantly in the form of tuition fees and living costs. It's little wonder, then, that many students are unable to make financial ends meet and opt for an IVA (individual voluntary arrangement) to sort out their finances and avoid bankruptcy.
IVA – The Perils Of Credit
For many young people, moving to university will be there first experience of living away from home. And the financial lessons can be harsh. Many will sign up for a multitude of store and credit cards, little realising the extortionate interest rates which are often found on such cards. Before long they are in a sea of debt and unable to pay back their creditors. In this circumstance, it is generally believed that opting for an IVA is the best solution to the mounting debt problems. By applying for an IVA, they, upon its successful completion, won't need to worry about the implications that would have affected them should they have declared themselves bankrupt.
IVA – Are Students Taking An Acceptable Risk?
Well, yes, and no. It is clear that having a university degree is often beneficial in applying for certain, more lucrative, jobs but it may be foolhardy of a student to believe that their debt isn't a problem as they'll be able to pay it back when they find a job. Students will find, when paying taxes and with higher living costs, the wage from their first job may not cover as much as they thought it would. The result of this is that many go into uncontrollable debt. An IVA is the often thought to be the most effective solution to cover debt. An IVA represents a legally binding agreement that will stop creditors continuing to pursue payment and allow those in debt pay it off in a structured manner within their means.
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.