With ever spiralling costs of consumer goods and general living costs, the issue of debt management is increasingly important. Research shows that Britons will need to work 70 days just to pay off the interest on their credit cards.
A recent report in icWales regarding the importance of debt management has shown just how difficult it is for the financially vulnerable to stave off the threat of bankruptcy. The report states that all the money that a person earns in the first 70 days of the year is merely enough to service their debt in the form of paying off interest and doesn't actually diminish the overall amount that they owe. Debt management is increasingly difficult to achieve as a result and many in debt will opt for an individual voluntary arrangement (IVA) to return them to a firmer financial footing.
Debt Management – Finding Financial Freedom
According to the report in icWales, an independent financial advisor declared March 10th ‘Debt Freedom Day' as it is the 70th day from the commencement of the year and, theoretically, when workers can really begin to formulate their debt management plan. It is testament to the current financial crisis that ‘Debt Freedom Day' took a whole month longer to transpire than it did in 2007 when it fell on the 1st of February. The reason for this, and why debt management is becoming ever more difficult, is because there has been a 10% increase in personal debt levels in the past year and the interest level rose to 6%. The overall amount that people in the UK owe on personal loans rose dramatically from £2.6bn to £9.8bn. This has caused a massive strain on an individual's debt management capabilities and many will opt for an IVA to remedy their financial woes.
Debt Management – Money Awareness
It goes without saying that when it comes to debt management, it is crucial to keep on top of your finances and be aware of all outgoing payments. Debt management expert David Elms explained to icWales the importance of money awareness, "In the current economic climate it has never been more important for people to realise just how much it costs to service their debts and to ensure they have adequate funds available to do so."
Debt Management Solutions with Varden Nuttall
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.