Many of us in the UK have diced with debt in the past ten or so years. Student loans, career loans and home loans have all been actively sold, alongside credit cards and store cards. If you couldn't afford it, you could still buy it using plastic. Perhaps one of the key factors fuelling the over-borrowing was the high cost of housing, as banks happily granted mortgages to people at five times their salary. Now, we're counting the cost as the economy brinks on recession. Individual voluntary arrangements and bankruptcy are set to soar.

Get ready to battle rising debt

If you are lucky enough to be armed with an individual voluntary arrangement than chances are you'll be able to ride out the tough times. Individual voluntary arrangements offer an attractive alternative to bankruptcy. And those who are in heavy debt will be increasingly at risk of bankruptcy in the coming months. Individual voluntary arrangements however offer a debt-free existence once the individual voluntary arrangement has been successfully completed. Unlike bankruptcy with an individual voluntary arrangement your bank accounts are not frozen, you don't have a black mark on your credit rating for the minimum six years, and you won't be precluded from certain types of employment or from becoming a company director.

Times get tough

Borrowers are set to struggle as banks are already vetting applicants looking to take out loans to try and manage debt. Having a clear and healthy credit rating has never been as crucial as banks and lenders become more nervous in the wobbly international money markets. They will steer clear of customers that hint at being financially overstretched or in debt. As one financial expert told the Independent newspaper recently, "Quite simply, money is going to become harder to get hold of. Consumers without a decent credit score could be in for a bumpy ride."

Individual voluntary arrangements will be in demand

Those at the front of the queue who might be desperate to take out an individual voluntary arrangement as a result are the 1.8 million homeowners whose fixed rate mortgages end this year. Alongside increased mortgage payments is a 15% rise in British Gas bills and the increased risk of redundancy. For the overstretched, action is needed – fast.

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.