The online gaming industry is big business in the UK but many are funding their online gambling through the use of credit cards. Experts warn this is a big financial risk and the threat of insolvency will affect many who gamble.
A report carried out by This is Money established that a massive 20% of online gambling is funded by debt or by eating into saving accounts. The risk that these people are taking is huge and the effects on their finances can often be profound. Many will face insolvency or bankruptcy if their gambling gets out of control and they are no longer capable of meeting repayments.
Insolvency – The House Always Wins
Financial experts warn that online gambling on credit cards or from savings are a dangerous game and can lead to the slippery road into bankruptcy or insolvency. Many who find themselves in financial strife will opt for an individual voluntary arrangement (IVA) in order to tackle their debt problems. Sean Gardner, a financial expert, stated to This is Money, "Borrowing money to fund a habit like gambling is potentially disastrous – it will inevitably lead you down a dangerous spiral of more and more debt. Borrowing when there is by definition a real risk you'll lose the money is a dangerous game to play – whether you win or lose your creditors will want their money back". Many will gamble to the point of no return financially and for those where insolvency is an all too real a problem, an IVA is often seen as the best solution to their situation.
Insolvency – Tackling Financial Problems
Many financial experts suggest that for those in a situation of spiralling debt, an individual voluntary arrangement is invariably the best way to address the problem. An IVA is a legally binding contract that will formulate a structured means for those in debt to pay back their creditors in a manner which is financially achievable for them. Insolvency is set to soar in 2008 as the credit crisis batters the UK economy and those who fall under the spell of online gambling are taking a massive risk regarding their financial future.
Speak To Varden Nuttall About Insolvency
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.