In terms of keeping on top of finances, many experts suggest we are ‘financially illiterate’ and that there needs to money management lessons. Many people in debt will use an individual voluntary arrangement to tackle money woes.
Many who find that their debt problems have gone too far and have become unmanageable will rely upon an individual voluntary arrangement (IVA) to help tackle their debts. A report by the British Bankers’ Association (BBA), however, is calling for a drive to tackle what they term as ‘financial illiteracy’ in the UK. They hope that by addressing this issue, the numbers who face bankruptcy through poor debt management will fall.
Individual Voluntary Arrangement – Staying debt free as easy as ‘A, B, C’?
Debt in the UK results from a number of facts but the BBA believe that by educating consumers on money management matters will have a profound effect on preventing more from falling into debt. The report conducted by the BBA found that a substantial proportion of the UK population were incapable of handling their finances in an effective manner and that action must be taken to remedy this fact. Experts in the finance industry often suggest that an individual voluntary arrangement (IVA) is a good way to tackle debt problems if they have gone too far and need to be addressed right away. The BBA are hoping that through re-education, they can intervene before things reach this stage.
Individual Voluntary Arrangement – Making A Debt Management Plan
For those who are serious about breaking free from the shackles of debt, one of the key steps that needs to be taken is to start living within one’s own means. There are an ever increasing number of cases where people are spending more on credit card payments and expenditures than they are earning each month. When it gets to this stage, it may well be advisable to seek a financial resolution such as an individual voluntary arrangement which is a legally binding agreement between an individual’s creditors and themselves and presents a pre-determined timeframe to pay back debts at a level that is financially achievable to them.