There has been a recent increase in the numbers of UK consumers seeking IVA advice, in an effort to find a way to get out of debt. Recent figures suggest that more people are having difficulty with larger debt levels, which tends to be the point at which an IVA may be the most suitable solution.
Since the onset of the global credit crisis, and the recent collapse in house values across the country, the availability of remortgage funds and secured debt consolidation loans has declined sharply. Historically, borrowing money using a house as security has been the way that most people have consolidated larger debt problems. This is done by simply replacing a number of expensive unsecured credit card debt and personal loans with one, more affordable, secured loan repayment over a longer term. This route is now no longer available for most consumers, since the banks are no longer willing to lend money when there is insufficient equity in a property.
Many consumers that are struggling with their unsecured debt repayments are left with limit options in order to solve their immediate financial crisis. For larger debt levels, an IVA is a way of gathering all unsecured debts into one, affordable monthly payment, over a fixed period of time, without having to borrow more money. An IVA must be nominated and supervised by a licensed Insolvency Practitioner and, as a form of insolvency, they need to be considered very carefully before being entered into. However if you are falling behind with your monthly repayments, then an IVA may be a way to avoid bankruptcy.
For more information and IVA advice, speak to a licensed Insolvency Practitioner, or call the telephone number at the top of the page.