Beating the Credit Crunch

Modern standards of living and the costs of maintaining this have risen considerably. Money is required in ever increasing amounts to maintain social status and purchase luxuries. More and more people are turning to credit to finance their lifestyle and other expenditure. Typical reasons for obtaining credit are to finance weddings, home improvements, car purchase or further education.

Recent changes in the financial markets are making it harder to obtain credit, a situation now commonly referred to as the credit crunch. Whenever a credit crunch occurs in the market, the availability of credit reduces and that which is available often carries high rates of interest.

If you are also seeking financial assistance and are unable to find suitable loans due to the ongoing credit crunch, do not worry. There are effective ways of solving your debt problems and beating the credit crunch without incurring more debt. One such way is the IVA, or Individual Voluntary Arrangement. The IVA is a government-backed debt solution that equips you with the power to effectively handle your finances.

With an IVA, you can easily settle your debts by making affordable monthly payments over a fixed period. An IVA enables you to repay your creditors at a reduced rate, benefiting from frozen interest and the knowledge that you will be debt free within a given time, usually five years. Any debt remaining after the IVA is completed is written off.

An IVA must be arranged through a licensed insolvency practitioner who will prepare all of the paperwork and correspondence with your creditors. Providing your creditors accept your IVA by 75% (by value), the insolvency practitioner will take over the supervision of the case and ensure that all terms are adhered to.