Tweet
Going Bust Has Just Got Harder
http://news.sky.com/skynews/article/...286969,00.html
<H2>Storm clouds are gathering for people who think they can easily erase their debts through Individual Voluntary Arrangements.
</H2> A leading debt manager revealed this week that banks are cracking down on the number of IVAs they are prepared to approve.
The news not only sent debt management companies into a tailspin, but it also cast a long shadow over people struggling with debt.
The news effectively means they will have fewer options to solve their money woes.
Currently, around 300 people are declared insolvent every day, of which a third have chosen IVAs.
But in future, lenders may insist on remedies other than IVAs, which generally line the pockets of debt managers.
Contrary to popular misconception, IVAs are neither cheap nor easy.
Debt managers can typically trouser up to £7,000 to manage an IVA that lasts up to five years.
That's more than £100 a month needlessly paid to a debt manager which could be thrown at the unmanageable loans.
If storm clouds have a silver lining, it's this: the hard line adopted by banks may now make people think twice before they borrow money.
Taking on debt can sometimes seem like an easy option, but a personal loan can also quickly turn into a millstone around our necks, which can only be removed by extreme measures.
But now, there is one fewer drastic measure that borrowers can use to tackle unmanageable debt.
http://news.sky.com/skynews/article/...286969,00.html
<H2>Storm clouds are gathering for people who think they can easily erase their debts through Individual Voluntary Arrangements.
</H2> A leading debt manager revealed this week that banks are cracking down on the number of IVAs they are prepared to approve.
The news not only sent debt management companies into a tailspin, but it also cast a long shadow over people struggling with debt.
The news effectively means they will have fewer options to solve their money woes.
Currently, around 300 people are declared insolvent every day, of which a third have chosen IVAs.
But in future, lenders may insist on remedies other than IVAs, which generally line the pockets of debt managers.
Contrary to popular misconception, IVAs are neither cheap nor easy.
Debt managers can typically trouser up to £7,000 to manage an IVA that lasts up to five years.
That's more than £100 a month needlessly paid to a debt manager which could be thrown at the unmanageable loans.
If storm clouds have a silver lining, it's this: the hard line adopted by banks may now make people think twice before they borrow money.
Taking on debt can sometimes seem like an easy option, but a personal loan can also quickly turn into a millstone around our necks, which can only be removed by extreme measures.
But now, there is one fewer drastic measure that borrowers can use to tackle unmanageable debt.
