Debt in the UK is at record levels and many debt advice organisations and agencies are dealing with unprecedented numbers of requests for bankruptcy and Individual Voluntary Arrangement (IVA) advice – even the Government owe nearly 800 billion – (it may surprise you to know that as a proportion of overall economic output debt at 68.7% of GDP compares favourably with the US – 84.8% -, Italy – 115.8% and Japan – 218.6%). International global debt comparisons aside, the point still remains; more people owe more money than ever before.
Often through no fault of their own many now find themselves in positions where their debt has rapidly gone from manageable to out of control – debt that needs addressing quickly. Increased unemployment, shorter hours, less overtime, pay freezes and pay cuts has all affected incomes. Expenditure on the other hand seems to have rocketed. Fuel prices, council tax, food costs, utility bills, you name it, everything seems to have gone up drastically over the last couple of years.
If you find yourself in the position of owing more than you can cope with, what can you do? What are the options when it comes to managing your debt?
Consider the benefits of an IVA Advice regarding IVAs is consistent – Individual Voluntary Arrangements can offer a relatively simple and effective alternative to bankruptcy. Particularly appropriate for unsecured debts such as personal loans, bank overdrafts, store cards and credit cards once in place an IVA also offers ongoing protection from additional creditor claims. You agree to pay an affordable amount to your creditors over a set time period (usually 60 months) and the end of the payment period any outstanding debt is written off – up to 75%.
If you live in Scotland then you have the option to pursue a system that’s similar to the Individual Voluntary Arrangement – the Protected Trust Deed (PTD). Instead of the five-year period usually applied to IVAs The Protected Trust Deed lasts only for 3 years. Again, in many cases Protected Trust Deeds might be regarded as a less onerous alternative to bankruptcy which in Scotland which is referred to as Sequestration.
For any additional information on IVA or indeed anything to do with debt management make sure you contact a reputable debt advice agency.
Tags: Bankruptcy, Debt advice, Debt management, iva, managing debt, protected trust deeds