The UK is facing one of the worst economic scenarios in over a decade as the dark cloud of recession looms. For those already in difficult debt who haven't sorted out an individual voluntary arrangement or who have an effective debt management plan in place now is the time to act before things get tougher.

Take out an individual voluntary arrangement

The reality is that if recession hits – and many economists predict it will – many people in the UK are vulnerable to financial meltdown. Already, millions of us spend more than we earn, juggle a variety of high interest debt and have over borrowed to get on an over inflated housing market. For some then without an effective debt management scheme, such as an individual voluntary arrangement, bankruptcy and repossession are very real risks.

UK economy – on the brink

The fact that it's the housing market, according to the Deloitte Economic Review, that will be at the heart of the downturn is a major concern. Many homeowners – of all classes and incomes - in England have overstretched themselves to be able to afford their property in the belief that the investment will pay back over time. But a recession that features a housing slump means that it isn't just those on the poverty breadline that are at risk. For those who have pushed their finances to the extreme to secure property, without an effective debt management strategy, they could find themselves victim to the recession – repossessions are expected to double.

Economy will be at weakest in over a decade

As the UK economy is expected to go through its weakest period in 15 years, more people struggling with debt will be searching for individual voluntary arrangements to stop the risk of bankruptcy or home repossession. However, borrowing loans or taking out mortgages to try and manage debt will become increasingly difficult as the global credit squeeze tightens. As more people struggle with immense debt, it could be harder to secure an individual voluntary arrangement. A prolonged downturn will force some employers to cut jobs. And as the rest of the world struggles economically, the outlook looks bleak.

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.