Despite the threat of record levels of insolvency in the UK in 2008, Brits are still using credit cards to make donations to charities. Tackling insolvency will be a key concern for many but it’s not stopping charitable donations.
Great Britain is known to be a very charitable nation and many consumers up and down the country regularly make contributions to the charities of their choosing. However, the tightening of belts due to the credit crunch and growing threat of insolvency for many could, by rights, be likely to result in a fall in charity donations. Despite these factors, however, many are continuing to use their credit cards to make donations and this could potentially have implications for the debt management of those in financial arrears.
Insolvency – The Debt Crisis
The number of people whose debt becomes too much and they file for insolvency is expected to reach record levels in 2008 and many will find that an individual voluntary arrangement (IVA) is one of the best ways to remedy their financial difficulties. However, despite the spectre of the credit crunch looming large over the UK, people are not letting this affect their donations to charity. A study carried out by Apacs discovered that Brits donated over £1 billion on credit cards during 2008. This is, of course, a noble deed but by donating on credit card, it is subject to interest and many who are struggling with their repayments should be reticent when it comes to charging additional payments to their credit cards. Insolvency and bankruptcy can have traumatic financial implications for those in debt but many have found that an IVA can be an ideal solution to their monetary problems.
Insolvency – Charity Donation Continue To Rise
One of the most recent events that led to massive charitable donations was the tsunami that effected Asia. This was at a time of more financial stability, however, when the threat of insolvency wasn't nearly as substantial. Sandra Quinn of Apacs stated, "The first time many of us used our plastic to donate was on the back of the massive Asian tsunami appeal and since this time, the average monthly volumes and values donated to charitable organisations by card has continued to rise".
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.