Debt Management - IVAs: Deal with Debt

If your debts are debilitating, an IVA is the 'proper' way of approaching debt management.

IVAs are the up-standing alternative to bankruptcy. If your debts are in their tens of thousands, chances are a consolidation loan won’t cut it. But bankruptcy can be unappealing. It can limit your future possibilities, be very public and humiliating, and still has a certain stigma attached. But an IVA (individual voluntary arrangement) is a form of debt management that is considered to be a more dignified, discreet alternative. An IVA will draw you up a plan allowing you to repay the debt you can afford over a fixed period of time. The debt you can’t afford is wiped clear once that period is up.

Debt management – IVAs on the increase

And in debt-torn Britain, it’s not surprising to hear that IVAs and insolvency climbed to record levels in recent years. 2007 figures revealed that almost 300 people a day declared themselves insolvent in 2006 across the UK. The total number of personal bankruptcies, insolvencies or individual voluntary arrangements in 2006 was 59% up on the previous year. And although IVAs as a form of debt management lulled slightly in 2007, many financial experts predict that was the storm before the calm.

Credit crunch claims more victims

The credit crunch is already claiming victims as repossessions soars and small businesses close under its weight. Debt management strategies, such as taking out an IVA, are increasingly crucial for those who want to get back to financial health. Unlike bankruptcy, with an IVA you don’t have to lose your home. More people are becoming aware of the pitfalls and dangers of debt; the news is littered with headlines declaring the debt time bomb ticking away in the UK. Rising repossessions, IVAs, debt management strategies and bankruptcies are all soaring, and predictions for 2008 look gloomy. In the past two decades, the UK behaved irresponsibly towards easy credit, taking on debt without thinking about paying it back tomorrow. Now pay back has arrived. If you’re worried about paying back your debts, a debt management solution, such as an IVA, could help.

Speak to Consolidate My Debt about Debt Consolidation

Consolidate My Debt are debt solution experts who offer a range of options to those in financial difficulty. Consolidate My Debt use fully trained debt advisors to ensure they find the right financial solution for you. Financial solutions from individual voluntary arrangements (IVA) to debt consolidation are offered and Consolidate My Debt can consolidate your debt into one affordable monthly payment. To find out more about the IVAs, debt consolidation and other financial solutions on offer from Consolidate My Debt just freephone 0800 158 3654 or email enquiries@consolidatemydebt.co.uk.

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