Debt is common to many of us – we all juggle mortgages, loans and overdrafts often with credit cards and store cards. But for some, debt can become overwhelming – so much so that thoughts of bankruptcy could be looming. Bankruptcy is the last resort, but there is an alternative which is much less restrictive, an individual voluntary arrangement.

Individual voluntary arrangement – Get back on track

If you're a compulsive shopper, you could end up with mounds of stuff you don't really need, and a financial headache you certainly don't want. But for some, compulsive shopping can escalate out of control just like gambling or alcoholism. An individual voluntary arrangement means you must pay a percentage of your debt over the life of the individual voluntary arrangement, usually five years. As such, you need to take a controlled look out your income and outgoings and stick to rigorous budgets.

The dangers of consumerism

Consumerism can be seriously addictive, and having the restrictions of an individual voluntary arrangement can help psychologically keep spenders in check, helping them clear their debts and get back into financial health. At the end of an individual voluntary arrangement you can start again with a clean financial slate, offering a massive incentive to rehabilitate your spending habits for good.

Individual voluntary arrangement could help control spending

The warnings of over-spending are clear – many people with credit cards can still be paying off the previous Christmas leaving them with difficult debts faced with the demand to overspend once more. But there are extreme cases where consumers are in all likelihood beyond helping with an individual voluntary arrangement and have to be declared bankrupt. One extreme case is that of a compulsive shopper known as ‘Gloria' in the book, Stop Me Because I Can't Stop Myself. The story follows Gloria's compulsive online shopping, which landed her in $80,000 debt, cost her job and resulted in her marriage breakdown before having to check into a psychiatric institution. It's estimated that 10% of Britons are compulsive shoppers, whose impulses can lead to unmanageable debt or end up resulting in individual voluntary arrangements or even bankruptcy.

Talk to Varden Nuttall about an Individual Voluntary Arrangement

Varden Nuttall has been established for more than 15 years and is dedicated to helping people in financial difficulty find a debt management solution through an IVA. We employ 90 people, including trained and skilled IVA administrators, and are one of the largest IVA companies in the UK, where we handle more than three per cent of all individual voluntary arrangement 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.