The cost of energy prices in the UK, from heating to electric, has shot through the roof and this has caused problems for scores of people across the UK. Many will have to file for an individual voluntary arrangement during 2008 as they are unable to make financial ends meet and fall into a spiral of debt.

Individual Voluntary Arrangement – Energy Prices Gone Mad

Almost entirely across the board, energy supply companies from N-Power to British Gas have increased the cost of their bills. These price hikes will invariably have the effect of plunging vulnerable groups into debt and those already in debt to breaking point. As such, the numbers expected to file for an individual voluntary arrangement to avoid bankruptcy are expected to surge in 2008. A shocking statistic supported by research suggests that 4 million people across the UK are living in ‘fuel poverty'. This means that more than 10% of the household income is spent on utility costs. This is expected to increase exponentially as a result of these price hikes.

Individual Voluntary Arrangement – Is Your Energy Provider Cheating You?

Whilst most coverage is focused on the effects that these energy price hikes will have, little is centred on why the prices have been raised. It is noted that even a small increase in living costs can be sufficient to cause financial difficulties to take hold. The lack of reasoning behind these price increases and the rise in numbers who will file for an individual voluntary arrangement as a result makes it a particularly problematic issue. It is suggested by British Energy that energy supplier companies may be colluding with one another to increase the cost of utility bills. The main problem is seen as being that the biggest energy suppliers own their own production power stations which means they control both the production and sale of the product which allows them carte blanche over the prices.

Individual Voluntary Arrangement – A Way Out Of Debt

These price hikes throughout the energy sector have had a profound effect on the levels of debt and many will opt for an individual voluntary arrangement when their debts become unmanageable. An individual voluntary arrangement is a legally binding agreement that will see a debtor pay back their creditors over a set period of time and at a level within their means.

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.