The Importance of Debt Advice When Insolvency is Commonplace

Seeking advice when you have a problem in any aspect of your life is always important, and even more so when you are facing the issue of debt. Very recently a number of debt charities warned of the rise in the number of households in the UK who are suffering because they are unable to make the payments on their debt. Despite the fact it was reported that in the first quarter of the year the insolvency numbers had fallen, these charities hold firm that debt will continue to be a difficult hurdle for far too many people. Contact us now for IVA debt advice.

The figures show that for the start of 2012, 28,723 people were made insolvent in the UK. When a person is facing the prospect of insolvency, it can often be beneficial to their situation to seek debt advice. Many professional debt advisors will offer their opinion free of charge, providing these individuals with options as to what they can do next. It is often the case that those who are in debt are unaware of the vast majority of options available to them. Between January and March of this year 132 people were declared bankrupt. Bankruptcy, as we all know, is the end of the line and should only be sought when there is no other way to deal with the situation. This is where free debt advice can come in handy, as it can be what assists individuals to avoid bankruptcy by offering another avenue by which to settle things with their creditors.

Sometimes people will choose to apply for an IVA, and 11,694 individuals opted for this in the UK in the first quarter of the year, showing a year on year rise of 8%. This increase might indicate that IVAs are one of the most beneficial options in terms of debt repayment plans. If you are considering an IVA then please contact us for free IVA and debt advice as soon as possible.

In essence, individuals will do best to avoid bankruptcy insofar as they can. But sometimes the sad fact is that even this can be too costly for many people in debt. Speaking on the subject recently, the chief executive of the Money Advice Trust, said, “Talking to people who call National Debtline leads us to believe that many people simply can’t afford the £700 it costs to go bankrupt, even though that would otherwise be their best option, leaving them in a financial black hole. Insolvency figures only represent the tip of the iceberg when it comes to the scale of debt problems faced by households across the UK.”

This statement portrays the prevalence of debt in the UK and how it is affecting so many lives. If you are in a position such as this, you will do well to seek professional debt advice. It could be the difference between coping with your debt and going bankrupt.