An IVA (Individual Voluntary Arrangement) helps you deal with debt problems without the need of further lending or having to declare yourself bankrupt. Providing you meet the terms of your IVA and make your agreed monthly repayments every month you will eventually become debt free.

To qualify for an IVA you have to have in excess of £15,000 of unsecured debts, owe money to two or more creditors, and be able to afford repayments of at least £200 per month. If you consider an IVA to be your best option you should then contact an insolvency practitioner who will negotiate with your creditors on your behalf.

To decide whether an IVA is appropriate for your circumstances you should take professional debt advice. We can help you with your decision and point you in the right direction.

Following negotiations with your creditors an amount of your debt will be written off. This could be as much as 80%. Interest on the remaining debt will also be frozen. You should bear in mind that an IVA will have an effect on your credit rating and you will not be able to borrow during the term of your IVA (usually 5 years).

After your IVA is finished your debt will be clear. This allows you to make a fresh start without losing your home or becoming bankrupt.

For more information and to see the range of options available to you depending upon your circumstances use our debt savings calculator or get in touch with us directly.

Categories: Debt

At IVA Debt Problem we can deal with a wide range of debt problems for all types of applicants. Debt problems arise for a number of reasons, however there are some ways in which you can minimise your exposure to debt.

Shop around. If you are taking out loans, credit cards or other financial products make sure you get the lowest interest rates and the products are suitable for your needs. The internet is a great source of information and there are plenty of comparison sites to help you.

Take control of your finances - check your bank statements regularly. See where your money is being spent and keep track of how much you are spending. If your outgoings start to exceed your incomings try to cut back in areas where you may be overspending.

Finally, act fast. Don’t wait for debt problems to become overwhelming, as soon as you notice that your outgoings are exceeding your incomings, and you are unable to address this yourself seek professional debt advice.

Cases of advice for people with debt problems rose 23% according to Citizens Advice in the year to 31st March 2010. The bleak economic outlook and possible austerity measures from a new government are likely to mean more people struggling with debt this year.

Categories: Debt

Recent Government figures have revealed a ninth consecutive quarterly rise in personal insolvencies. This takes them to the highest rate since records began.

35,682 people entered into personal insolvency in the first three months of 2010, a near 18% rise on the same period last year, as consumers continued to struggle with personal debt, despite the UK economy starting to recover.

This figure includes over 18,000 bankruptcies and nearly 12,000 IVAs.

Falling incomes during the recession is one reason why so many people are struggling to make ends meet, and with tax rises and public spending cuts on the way to ease the country’s debt burden the worst may still be to come.

People struggling with debt should seek professional debt advice sooner rather than later. Options such as a debt management plan can then be considered before insolvency becomes necessary.

Categories: Debt, Economy, General

UK personal debt at the end of March 2010 stood at £1,460bn. The twelve-month growth was 0.9%. Individuals owe more than the whole country produces in a year, according to Credit Action.

The average household debt in the UK is £8,796 (this excludes mortgages). This figure rises to £18,324 if the average is based on the number of households who actually have some form of unsecured loan.

Categories: Debt, Economy