As millions of us will have to brace ourselves for a financial crisis, ‘Broke Britain’ will be searching for solutions to debt, including individual voluntary arrangements.
Individual voluntary arrangements are set to soar in 2008 as ‘Broke Britain' struggles to stay afloat. According to recent reports, debt is reaching an all-time high, with over nine million British people juggling mortgages, credit cards and loans – £30,000 is the figure believed to be the average amount owed for problem debtors. And for them, an individual voluntary arrangement is a far more appealing alternative to the black mark of bankruptcy.
Individual voluntary arrangement – a financial strategy
The UK economy is facing financial crisis, and debt experts are predicting a record number of personal insolvencies as more individuals are forced to investigate individual voluntary arrangements as a way out of debt. As well as the general economy, more people are seeking out an individual voluntary arrangement thanks to:
• Overspending at Christmas
• The increased mortgage payments as low fixed rates come to an end
• Rising utility bills, including a 15% rise in gas and electricity
• And individual voluntary arrangements will be increasingly sought after as it becomes harder to borrow money to patch over debt - especially if debt is already on your credit record.
Day to day life of debt
You don't need to have taken massive financial risks in your life to be experiencing the downfall of debt. Individual voluntary arrangements used to be for those who had unsuccessfully opened their own business for example or taken risks on the stock market or property market. But more people with everyday debt that simply grows out of control are seeking out individual voluntary arrangements as thousands are forced over the financial edge and facing up to bankruptcy.
IVA, bankruptcy and insolvency figures leap
The jump in the number of people taking out individual voluntary arrangements or struggling with insolvency and bankruptcy is predicted to rise sharply – triple the amount in 2004. This is partly due to the fact those already in debt are still piling the debt onto their credit cards and taking out loans despite the economic slump and increased cost of taking out debt. It will be harder than ever for those with a poor credit rating however to take out a mortgage or loan as lenders crack down – leaving more people with no option than to face up to personal insolvency. Recent figures suggest that 23% of Britain (9.5 million adults) are finding their current debts ‘unmanageable'.
Speak To Varden Nuttall About Individual Voluntary Arrangements
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.