Debt Options Suggest That an IVA Can Help the Spiraling Cost Of Living

Debt options, a specialist debt management company give information and advice concerning 'survival debt' and IVA management. End Quote

(1888PressRelease) January 06, 2011 - In early Dec 2010, The Independent reported that London has overtaken Paris as officially the most expensive capital in Europe as far as living costs are concerned. Even outside the capital, the UK faces rising fuel bills in the face of extreme cold weather conditions. As such, The Debt Options team are more than aware that many UK consumers are finding the cost of living particularly challenging as the UK makes its journey out the recession.

Debt Options are a specialist debt management company who have supported consumers with major legal debt management solutions. The company's directors have over eleven years of supporting consumers with serious debt problems including so called 'survival debt'. This happens when consumers begin to manage everyday essential bills using credit cards or other credit products simply to survive. This type of 'survival debt' might present a seemingly short-term solution to everyday bills, but the interest and repayments soon add up. Just at time when the consumer is finding regular bills a challenge, there are then new credit obligations and the need to find extra money for the accompanying interest.

"There has certainly been a marked increase in the number of debt problems in recent years and we know that many consumers have found it hard to balance competing financial demands each month; they are often trying to juggle everyday bills alongside more and more repayment installments. When you factor in a redundancy or a cut in working hours it's not difficult to see why 2009 alone broke all the records for personal insolvency, as the recession really begin to seriously impact on people's household budgets. Consumers often need credit card help when they've taken out a credit card with an introductory rate which then reverts to a far costlier one after a certain period of time. They may also be struggling with cards they'd hoped would give them a zero interest rate which simply didn't deliver. All of the above can become more and more difficult in the face of redundancy and other unexpected changes in personal circumstances which are simply beyond control."

At this time of year, the vast majority of households also incur extra expenses over the Christmas season; they are also likely to see larger household bills with the cold snap, meaning people are far more reliant on their heating than in milder years. This combination of circumstances will be particularly challenging for many this month, especially those who are already relying on credit cards to meet their everyday needs.

"It might be tempting to try to make the minimum repayments on credit and store cards and try to carry on but the debts can sometimes still become unmanageable in the medium to longer term. There are various legal forms of debt help, such as Debt Management Plans and the IVA. IVAs in particular are often used when people are juggling multiple debt repayments every month, since they can be applied to three or crucially more creditors who between them all are owed more serious amounts, typically £15,000 or more. When people are really finding it hard to meet their obligations, an IVA can stop persistent demands for repayment and create a calm, manageable repayment plan instead, where money is only allocated for debt repayment after reasonable living costs are met. "

Any UK consumer facing debt problems can call the Debt Options team for confidential, free advice on 0800 234 3605.

The Debt options website also contains plenty of factual, calm information on all aspects of UK debt management, IVA help, credit card help, debt management plans and all the other major legal debt options.

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