Over the last decade, the UK has enjoyed something of a boom. The value of property has increased at record levels, creating enormous pots of wealth for many people, in exchange for no work whatsoever. The word used to describe this new wealth is “equity”, and many people have made the twin mistakes of believing that it will continue to forever increase and that it will last forever.

Neither of these things has turned out to be true. Since the global credit crunch, the value of houses has collapsed, and in a few short months the equity has all but disappeared.

Another investment medium that we all thought was as safe as houses was the stock market, which like property has been on an upward march for the last decade. The collapse of the banks, along with numerous other financial institutions, soon put paid to that, and now many investors have literally lost their shirts.

The net result of all of this is that people are a lot worse off than they were, and raising finance has become a lot more difficult than it was. This has had a knock-on effect in the debt management industry, where previously debt consolidation loans were the first port of call for the overcommitted. Now that this option has vanished, the hard up consumer is left with a Debt Management Plan, or an IVA for higher debt levels.

IVA advice can make the difference between total financial collapse leading to bankruptcy, and finding ones way through the nightmare of debt and emerging still in one piece. Typically an IVA will allow debts to be gathered together into a single, affordable payment and cleared over a set period; usually five years. It is recommended that professional advice is sought before any decisions are made and all IVAs must be nominated and supervised by a qualified Insolvency Practitioner.

IVA help needed as investments fall is a post from: TheDebtPeople.co.uk