Job cuts and redundancies often lead to unexpected or unplanned for debt. The truth is most of us can juggle debts and avoid an individual voluntary arrangement or debt management plan, simply by meeting the minimum repayments every month – whether it be on our mortgages, loans, overdrafts or credit cards. But research shows that many of us don't have contingency funds, savings or even a pension as day-to-day costs swallow up all of our income and then some. As the global credit crunch kicks ever-harder, more news headlines are announcing a rise in redundancies across commercial and financial sectors. As a result, some ex-employees will be plummeted into major debt as they are unable to pay their bills or fall into arrears – an individual voluntary arrangement could offer a temporary solution until they are back on their financial feet.

Individual Voluntary Arrangement – Dealing with Debt

The Times newspaper recently reported that Britain's top 350 companies are planning to cut jobs, as part of an overall downsizing in reaction to the credit crisis and dwindling profits. The prediction was a result of research undertaken by a leading accountancy firm that interviewed business directors on the subject. For those employees whose lifestyles rely on their income, redundancy can be devastating financially leaving them with no alternative but to take out an individual voluntary arrangement or bankruptcy order. Although redundancy often comes with a buffer of a month's salary or fair pay out, unless a homeowner finds equivalent work fast they could end up losing their home, or attempting to stave off bankruptcy with an individual voluntary arrangement. Homeowners are not entitled to housing benefits and job seekers' allowance is nothing for high earners with high outgoings; mortgage insurance will only cover basic costs. Employees who have gone through redundancy have never been so vulnerable to debt – and the demand for debt management solutions such as individual voluntary arrangements will no doubt soar.

Facing up to Financial Meltdown

Businesses could chop jobs without healthy redundancy packages as they face financial meltdown. The Times reports:

• 62% of the British companies surveyed said credit is more difficult to secure
• 73% of directors said credit was more expensive
• 78% felt equity in their company is undervalued
• Over half of the companies plan to slow down hiring
• 40% are considering cutting down existing work forces

Individual voluntary arrangement packages and debt management deals could become crucial for many employees affected. Statistics show that the high earners may be particularly vulnerable:

• 9,000 job cuts i have been announced by the bank Citigroup
• Merrill Lynch announced a $6.5billion hit and are expecting to cut 4,000 jobs globally
• Several leading banks in America have announced job cuts
• JP Morgan have predicted that up to 40,000 jobs in London's financial capital could be chopped as a result of the credit crunch.

Speak to Varden Nuttall About An Individual Voluntary Arrangement

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.