IVAs – a valuable solution, but not the only one

PRLog (Press Release) – Oct 26, 2007 – With personal debt soaring to record heights, more and more people are doubting they'll ever pay off what they owe. After last year saw over 110,000 personal insolvencies, accountants KPMG predict a figure of 120,000 for 2007.

Not long ago, some experts were expecting this to be the first year in which Individual Voluntary Arrangements (IVAs) outnumber bankruptcies, but recent figures from The Insolvency Service show that the number of IVAs being entered into is currently dropping. For people whose only alternative would be bankruptcy, this could be a worrying trend.

There's no doubt that an IVA can be good for everyone involved. People who owe money benefit from a partial write-off and a very real 'light at the end of the tunnel', as they know exactly how much they'll pay and exactly when they'll be debt free. Their creditors can expect five years of regular monthly payments, which must amount to more than they would recover through a bankruptcy.

Yet an IVA is not always the solution. "Many people simply aren't eligible," says a spokesperson for Debt Advisers Direct ( http://www.debtadvisersdirect.co.uk ), "as IVAs are only available to those with significant debt who can't afford to pay it in a reasonable period of time. Although British consumers spent £321 billion on debit, credit and store cards last year (according to the UK payments association APACS), the average person's unsecured debt is still far below the £15,000 minimum an IVA usually requires."

"Also, many people would be much better served by other debt solutions, such as remortgaging, debt consolidation ( http://www.debtadvisersdirect.co.uk/debt-consolidation.asp ) or a debt management programme. We would urge anyone considering an IVA to contact a company that offers impartial advice as well as experience."

As part of the Think Money Group, Debt Advisers Direct ( http://www.debtadvisersdirect.co.uk ) were one of the first companies to offer free debt advice to people throughout the UK. "We have been helping people in financial difficulties since 1993, and today we offer a wide range of financial solutions that includes debt consolidation ( http://www.debtadvisersdirect.co.uk/debt-consolidation.asp ), debt management, remortgages and managed bank accounts – as well as IVAs."

"For many people in debt, an IVA is undoubtedly the best way to start afresh, but everyone's situation is different, so there is no universal 'best' solution. The key thing is to explore your options carefully before signing up to anything."

Debt Advisers Direct PR contact
Melanie Taylor
Think Money – Debt Advisers Direct
Pennington House
Carolina Way
Manchester
M50 2ZY
0845 056 6480
http://www.debtadvisersdirect.co.uk/

Own details:
enquiries@debtadvisersdirect.co.uk