IVAs – what are they?

An IVA is an individual Voluntary Arrangement, and has become known as the softer alternative to bankruptcy for those with high levels of unsecured debt. Read more

Tags: arrangement, individual voluntary arrangement, interest, debts, iva

Could bankruptcy be the best option for you?

Most people are only too aware of the concerns over the UK’s growing debt mountain, and over recent years an increasing number of consumers have found themselves with growing levels of debt in the form of credit cards, loans, store cards, and more.

As a result of this many have struggled to keep up with repayments, a matter which has been made worse by rising interest rates and repayments for those with variable rate loans and mortgages. The UK has seen levels of bad debt and insolvencies rocket over recent years, with an increasing number of people teetering on the financial brink because of their debts.

One debt charity, Credit Action, has stated that despite the stigma and the potential problems that are linked with bankruptcy many consumers that are having real debt problems could actually benefit from wiping the financial slate clean and declaring themselves bankrupt. The charity has pointed out that bankruptcy is not an easy route, nor is it the right route for everyone. However, as a last resort for those in severe debt that can never be repaid it can be effective and can give them the fresh start that they need.

Credit Action officials do point out that the consequences of bankruptcy can be far reaching, and getting future credit could prove impossible for many. However, one official from the charity stated that although it is not a step that should be taken lightly it is a course of action that could prove the most effective for some people.

He stated: “Bankruptcy is really the option of last resort, but for some people it is the right thing to do if they’re never going to be able to pay their debts back.”

There are other alternatives available for those with a high level of debt who are experiencing difficulties making repayments. This includes Individual Voluntary Arrangements, which are considered to be a softer alternative to bankruptcy, informal arrangements with creditors, and debt management plans. 

Tom Smith
20th September 2007

Tags: repayments, Loans, iva, bankruptcy, arrangements, debt, idividual

Finance management skills being taught to your students

With many adults and households now struggling to keep up with debt repayments, a high number of people struggling to manage their finances effectively, and a record number of bankruptcy and IVA applications being filed, schools in the UK are trying to address the issue of consumers debt at its roots by educating youngsters in how to manage finances. At present, children aged just eleven and upwards are being taught about effective financing, which should give them valuable skills and knowledge for the future and could help them to avoid the levels of debt that many of today’s adults are having to deal with.

One school in Pickering, Yorkshire is already enjoying the benefits of this addition to the curriculum, and students seem to find it very useful. The school is working with the Personal Finance Education Group, which aims to bring a better grasp of personal finance into the national curriculum, aided by fifteen million pounds in funding from the Financial Services Authority.

The Regional Director of the Personal Finance Education Group stated: “It’s helping them understand what financial information they need and then how to apply it. If you look what the financial situation looks like for the under-40s it is very different to the way it was some twenty or thirty years ago. A young person aged 18 can clock up credit cards at an alarming rate without much reference to their financial situation and
the important thing is to let people know how to manage their financial situation.”

The children at the school have had some very positive things to say about the new aspect of education that they are receiving, and many are already aware of how this type of additional education could help them in the future.

Tags: students, teach, iva, young, teachers, finance, educate, debt