It's O.K you can get an IVA...
An IVA is fast becoming the number one debt solution in the UK. Thousands of people annually, are requesting the chance to be offered an agreement of an IVA by their creditors. IVA help and advice is once thing, yet I am more concerned with the fact that money is still being somewhat irrationally and occasionally immorally lent to people who know that they cannot repay such borrowings.
I say immorally because in a recent study of people who took out IVAs, 43% of them were people who had large depressing debts (over £15k), and not for things they needed (like household bills or other debt repayments) but for things they wanted. Shockingly Sainsburys published a report in 2007 into their personal loans and the spending habits of their debtors, stating that £5 million they had leant out had been spent on plastic surgery. Now I'm not one for telling anyone how to live their life but getting IVA advice and help for the sake of a nose job seems ludicrous.
With over 15,000 people declared bankrupt in the first quarter of this year alone, it doesn't bode well when you and I well know that banks are not going to just let this amount of money disappear. They will simply reclaim it else where by increasing interest rates, lowing saving rates and other joyful things banks do!
The ease of acquiring a loan these days is scary, there is no sense in the fact that a person can acquire a loan with out the means to pay it back. What is worse is that the banks and lenders allow you quite willingly to do so. This is a negative situation that no amount of IVA help or advice can reverse.
What I am trying to say is, people be aware!
Know your limit, and be realistic about what you have and what you want. Simply if you can't afford it don't have it, this is of course boring and against the modern philosophy of 'living ones life to the full', but if being knee deep in debt advice, IVA help and bankruptcy forms before your 30 is your idea of fun, then by all means, go ahead borrow that extra £5k, that nose job is worth it...!
