Debt Causes Additional Pressure In Times Of Financial Insecurity

Debt Causes Additional Pressure In Times Of Financial Insecurity

by Caleb James on 25 Apr, 2012

In the modern climate it is only natural that people should feel particularly concerned about their finances. Financial insecurity is one of the primary causes of stress in the UK and people often shy away from thinking about the future simply because they can’t face the figures.

The current climate does nothing to improve the situation simply because people in a range of different industries and sectors enjoy less job security then they did a few years ago. This is another symptom of the present economic situation affecting the country as a whole.

For people struggling with debt the matter is even more serious. Debt is obviously something that people seek to avoid wherever possible, but it is nevertheless easy to build up a list of creditors, all with their own expectations of you concerning repayments. At first, your repayments may seem eminently manageable, but it only takes a few small changes for debt to run away with you.

For instance, a change in your working circumstances or a few sudden and urgent costs, perhaps related to your home or personal life, could put you in trouble as far as your finances are concerned. Those payments that once seemed relatively easy to keep up with may start to get out of hand. The reality of the situation may not dawn on your straight away because the figures remain within your reach.

The fact is that they can get out of reach very quickly and you suddenly find that you have completely lost control of the situation. Given the money worries you are already experiencing, this added problem is only likely to compound things and cause you more stress. The sensible thing to do in this situation is to seek outside help to bring your debt back under control.

It makes no sense to go on borrowing money as a means of paying back your creditors because you debt may continue to build up. Instead, the answer may lie in an IVA. The term IVA stands for Individual Voluntary Arrangement and it represents an effective route out of debt when you are struggling to make ends meet.

Applying for an IVA from companies such as Harrington Brooks is a matter of working out your eligibility – this is usually a question of the number of creditors you have and the total amount of money you owe – and then speaking to debt management professionals about the best plan for you. Debt managers are experienced at drawing up payment plans on an individual basis to make sure that IVA has the desired effect.

In terms of managing the stress associated with your money worries, IVA usually has a very positive impact. This is because it helps to free you of the hassle of dealing with creditors. Creditors are not allowed to contact you once the IVA is in place and this often removes much of the pressure and restores your confidence in the system.

Moreover, an IVA usually reduces the amount of money you have to pay back and it dramatically reduces the likelihood of bankruptcy. Bringing the level of your debt back within reachable limits is something at the very heart of effective debt management and it is something that IVA is recognised for in the world of finance.

This list of positive attributes of debt management is not exhaustive but it does give you an idea of how an IVA could be of benefit to you. The advantages listed are music to the ears of those suffering with the financial consequences of the wider economic picture in the UK and the sooner those affected by debt problems are able to find an appropriate solution, the sooner they are in a position to rebuild.

About the Author

Caleb James

Caleb James is a financial advisor and journalist, who contributes regularly to financial blogs and industry publications.