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Help with Debt
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by: Laura Brown
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Word Count: 302
Being in debt is a distressing and often humiliating experience for a lot of people. Many feel that they have failed, and are unable to admit the true state of their finances even to those closest to them. A result of the current recession, unfortunately, is that more people are going to fall victim to this stigma. However, there is a wide variety of help available so that those that have fallen into the red will find it easier to cope.
One of the services offered is debt advice. Debt advisers can be easily consulted, and are then on hand to give support, offering suggestions of how to make money go further and how to deal with companies. A monetary plan can be drawn up, to assess spending and income. A large number of banks are offering this free service now too -personal debt advisers are available for appointments in most leading branches. Debt councilors can be hired, also to give advice.
An IVA (Individual Voluntary Arrangement) is a free service for those in debt, through which declaring bankruptcy can be avoided. With the help of an insolvency practitioner a five year repayment plan is developed, and the creditors then meet and vote on whether it should be agreed to. If seventy five percent vote in favour the IVA becomes a legally binding contact between the debtor and the creditor. Money is paid into a fund, from which payments will be made, and if all the repayments are made at the end of the five year period the remaining debt will be wiped.
The IVA is income assessed, so the debtor will only be paying back as much as they can afford, even if this means that the creditors will be repaid less than they are owed.
About the Author
The author of the piece would like to direct the attention of readers towards the helpful pages of http://www.debt-free.org.uk -- for further information on debt consolidation and debt management services...
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