Wednesday 25th of November 2009
Individual voluntary arrangement (IVA) advice could be an option an increasing number of people in debt decide to research, after claims from one financial expert that money concerns continue to rise.
Chris Tapp, director of Credit Action, explains that a lot of individuals are worried about job security and are therefore turning their attention to their debt commitments, something an IVA could be used to deal with.
If households are worried about how a number of unsecured debt responsibilities will be met should their income drop, an IVA could prove to be of assistance if they owe more than £15,000 and want to avoid bankruptcy.
An IVA can merge all unsecured debt commitments into one monthly and more affordable repayment, which could support people through tough times. Some individuals may be worried about asking for IVA advice, but this repayment method can be the appropriate solution for many.
"It affects people’s emotional wellbeing, it affects people’s relationships, it affects people’s health. So it is quite a serious problem that we’re facing," Mr Tapp asserts about debt.
Homeowners - especially those with families - could be particularly concerned about the impact of high debt levels, especially if they are worried about having their home repossessed because of their failure to keep up with repayments.
An IVA can allay these fears as an agreement is reached between borrowers and creditors that no further action will be taken so long as those in debt continue to meet their IVA repayments.
"I think more people than ever are worried about their finances as we continue through what is going to be a very drawn out economic slowdown," Mr Tapp adds.
While an IVA does stay on a person’s credit file for six years, putting in hard work now to repay debt can result in households eventually becoming debt free and being able to make a fresh start, which could reduce their stress levels.
By Rachel Powell
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