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How can Government Debt Advice help you?

Jun 28, 2008
The Economic and Social Research Council of United Kingdom has published its report on the personal finances of the country building a frightening apprehension of the future economic prospect. The total amount of the consumer debt owned by the people of UK has crossed the yearly amount of GDP of this country. The statistical analysis shows a sharp hike of debt level from April of 2007. The total amount of personal debt in UK reached at 1.3 billion pounds, while the consumer debt to 1.3 trillion pounds.

Due to this a number of problems like the inflation and bankruptcy is on the rise. The government debt advice programs could not suffice as it was expected to do in this persisting problem of debts. Debt could bring many problems to the stability and safety of the nationalized economy. This was the perfect situation for the introduction of the Individual Voluntary Agreement. The IVA was initially formed with the introduction of the Insolvency Act of 1986. The debt scenario required some kind of quick solution, and IVA has catered to that need.

Individual Voluntary Agreement is a solution pertaining to the debt management. It is an agreement between the debtor and the creditors, which deals with the ways of repaying back of debts. The agreement is done via an Insolvency practitioner, who puts forward the proposals of the debtor to his creditors. Usually the customers opting for IVA can get rid from paying up to 75% of the total due debt amount. The customers can opt this repayment method to avoid being declared bankrupt. Even the customers who have been rejected for any other forms of debts planning can opt for this debt consolidation service. It is helpful for people with low credit score as well, for they have the opportunity to clear up the debts and enhance the creditworthiness.

There are many debt management plans that lead you to a never-ending loop of debts. The financial experts and professional counsellors of various debt management firms often advice to take a new debt to pay off the previous one. But the IVA plan does not lead you to such a loophole. The IVA program can provide an urgent help with an instant suspension of the harassing intrusions from the creditors. The government debt advice often goes for an IVA as this procedure is equipped with facilities that other programs lack.

A good government debt advice is helpful to the debtors who require one and it is regarded as the most authentic form of debt advice. The tenure of the Individual Voluntary Agreement lasts for 5 years. The debt amount is lowered as 75% of the debts are written off and the interest to be paid on the debt is frozen. Opting for an IVA is entirely dependent on the customer and his or her personal sphere. An analysis about the debt scenario must be performed before opting for an IVA.

The IVA in comparison to the other methods of debt management including bankruptcy is much better. The IVA helps in protecting the customers from being declared bankrupt. In this option no property hand over is required, and credit score of the customers is enhanced. A fee is charged for the services offered. For the proper execution of the IVA one can take advice from the government debt advice centres.
About the Author
Take heed of government debt advice when reducing personal debt. Government debt advice provides help on iva which may cut debt by upto 70%. Check out all your options.
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