Dealing with financial worries is an everyday occurrence for some people in the current economic climate.
Even before the financial market took a turn for the worse there were still a lot of people who had got themselves into high levels of debt.
However, since the dreaded credit crunch, the number of people who are now weighed down with large amounts owed has rocketed.
Obviously a lot of people are still able to manage their monthly payments and can still lead a relatively normal life but for others this is not possible.
The situation is so bad for some that bankruptcy may seem like the only way out of the mess.
If you are currently in this position and you feel that you are being pushed towards having to declare yourself bankrupt then you should look into an IVA debt solution as a possible alternative.
If you are receiving a regular income that is not made up entirely of benefits then setting up an Individual Voluntary Arrangement could be a good option for you.
This involves using an insolvency practitioner to come up with a more affordable monthly payment plan.
You will end up debt free usually within 5 years and will only have to pay off a percentage of the overall debt.
There are a number of advantages of choosing this ahead of going bankrupt.
For a start, this option will not be declared publicly whereas bankruptcy will.
This means that your employer, landlord or anyone else will not find out about it unless they are one of the people you owe.
You will also not be forced into selling any of your assets by going down this route, if you go bankrupt then you will more than likely end u losing your possessions.
You should also consider the fact that declaring yourself bankrupt could affect your career, choosing to use this agreement will not do this.
Choosing an IVA debt solution may not always be the best option for you depending on your circumstances.
Therefore, it is important that you consult a professional before you make any firm decisions.