Thursday 12th July 2012
When your personal debt has become too much for you to handle alone it is time to seek outside help. One way in which unmanageable debt can be solved is through getting an IVA, which will organise personal debt in such a way that it can be paid off over a period of time. With an IVA some of the debt might even get written off, if it is required in order to make the debt manageable.
The following are some of the main reasons why people in debt should seek advice IVA advice.
Thousands of people in the UK take out IVAs each year, which is a good indicator of just how much of a problem debt is becoming. Many people are taking out loans in order to pay bills, which is burying them in more financial problems as time progresses. The vast majority of people will only look for advice about debt solutions as a very last resort. Many of us are ashamed that we have fallen into debt, and when we don’t get help the problem only becomes larger. When a person finds that they can no longer struggle by and it is actually impossible for them to find a way to pay the most basic bills, this is the most common time when they will seek debt advice.
Another reason for debt and potentially the need for an IVA is unemployment and redundancy. The economic climate means that a large number of businesses are closing down each year, and with that jobs are lost. The loss of a job, or the inability to find a new job, can often lead to financial hardship. If an individual subsequently finds a new job, in many cases this will be on a reduced income. Debts could have increased substantially during the period of unemployment which is further compounded by the reduction in take home pay.
When this becomes too much an IVA is often sought as the method to relieving these hardships. The structured nature of an IVA provides those in debt with a payment regime they can handle, as opposed to the massive infeasible payments that can often build up.
Furthermore, the avoidance of bankruptcy is also a reason why people seek IVAs. In many cases, and especially when it comes to personal debt, people will want to avoid bankruptcy as it will leave a lasting mark on their financial reputation. An IVA is a way to avoid going bankrupt and, whilst your credit rating may well be affected, in most cases it would recover at a quicker pace than when going bankrupt. You would be working towards paying off what is owed and working towards a debt free situation.
Often those in debt will be dealing with huge interest build up, and this can be another reason to seek an IVA as it freezes the interest owed on credit cards and some other debts, in order to deal with the debt in a realistic manner. It goes without saying that when a person is faced with massive interest rates it will seem like there is no possible way to repay it all, and seeking IVA advice can make a big difference in this respect.
If you have found yourself in one of the situations described above, require debt advice or have any IVA questions, then you can contact us today and put yourself on the path to a positive financial future.