Here at Freedebtadvice-uk.com we are like broken records…whatever you do, DO NOT ignore your debt problems.  It seems like a subliminal human instinct to ignore a problem or situation that someone feels they have no control over.

The people most likely to need debt help in the form of an individual voluntary arrangement (IVA) or a debt management plan are very likely to be the same people who have tried to ignore their debt problems instead of facing it head on.

According to spokesman for Christians Against, such a situation is very common, He said: “Of all the people we have seen, there is a common thread – the people who have ignored the problems the longest face the most extreme difficulties.”

People who are contacting debt advice organisations are, on average, £16,000 in debt.  This is typically more than they earn in an entire year.

Research into why people get into serious debt problems has found that common initial problem was a difficulty with budgeting.  Next on the list was unemployment and, lastly relationship breakdowns seem to play a major part in a person’s debt problems.  Others said illness; bereavement and accident contributed to their debt problems.

Those people who are considering an IVA should take into account that the minimum debt considered is 15k.  An IVA is a form of insolvency.  Its not quite as bad as bankruptcy as you can still keep your home and possessions.  In an IVA creditors agree to write of a percentage of your debt and take a smaller amount.  This reduces your total monthly payments.

An IVA may be useful for those in danger of having their home repossessed.  Lowering other monthly expenses other debts will usually free up extra money to pay mortgage.

One of the drawbacks of an IVA is that it will restrict future borrowing.  This is not an issue for many as they are happy to not be drawn into another credit frenzy that will lead to more debt.

If your IVA is accepted the repayments are structured to be paid over a period of no more than five years.  On some rare occasions, this can be extended to 6 years.  After this period, the rest of the debt is written off.  An IVA requires at least 75% of a persons creditors them to agree to the new payments to be legally binding.

Statistics show that the average type of person that is most likely to ask for assistance with debt is a single mother in her early 40s with two children.  Figures published recently have also revealed February is the month when the largest number of people in the UK seek help for their debt problems.

So there you go, if you are in debt and feel you have no way out or you are nervous about asking for help, you should know that there are tens of thousands of people in the same boat as you.   People are contacting debt advice firms all the time.  However bad your debt problems may seem, a solution can usually be found.

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