RUNCORN, England — Individuals in the United Kingdom, much like people in the United States, are increasingly struggling with higher and higher debt levels. But while people from both countries often end up indebted to the same companies such as MBNA, Capital One and American Express, those facing problem debt in the UK have access to a greater variety of resources to assist them in troubled times.
Steve Rhode, Chairman of the not-for-profit financial crisis centre Myvesta UK, and President of the US based Myvesta Foundation, has seen firsthand the solutions available in both the UK and USA. He said:
"Currently in the United States those people who have fallen behind on their bills and are now facing large, insurmountable debt loads have only two options, bankruptcy or nothing. And with recently passed legislation in the US, it is even harder for individuals to declare themselves bankrupt. As a result, more and more people have been put into payment plans they cannot afford, or have become slaves to their creditors. In the UK individuals have access to IVAs, which are in my mind the most powerful solution available to people in debt."
IVA stands for Individual Voluntary Arrangement, a formal agreement between consumers and creditors that allows individuals to pay off their debts over a five-year period without going bankrupt.
Mr Rhode said: "Not only are IVAs revolutionary in that they allow consumers to fairly and equitably pay off their debts, but they are a custom solution based on what an individual can realistically afford to pay back to their creditors. Each individual's unique situation is considered. It's not a cookie cutter solution, it's a humane, caring and compassionate way to help eliminate problem debt."
To help consumers better understand IVAs and the IVA process, Myvesta UK offers resources on their web site including an online video series, online chat room and a list of frequently asked IVA questions and answers. They also offer an advice line that individuals can call for free. To learn more visit Myvesta.org.uk online or call free on 0800 1116 885.
