Because the government partially froze much of the economy to stop the spread of the virus, there have been winners and, sadly, some losers.
People with a guaranteed salary who work for the government or people in the private sector who have been furloughed have saved a lot of money by not travelling to work each day.
Data shows that some people’s personal debts and credit cards have gone right down during 2024/2024 as people have had spare money to pay down debts.
People who are self-employed or individuals who contract through their own companies have burned through savings and retained earnings without any help from the government, while many of their fixed costs have remained constant.
Personal Debt for some people has spiralled out of control?
For people who have had their incomes slashed or even cut to zero, credit cards have been used to pay for basics such as food, utilities, council tax and rent.
It is all too familiar for some people to take another trip to the ATM to pull cash out of their credit card so they can put the money in their bank to pay the monthly payment.
But eventually, these debts must be paid back or defaulted on. But people don’t want bailiffs, judgements, threatening letters and other stress, they want a solution.
Getting the right IVA Debt Advice can be key to living sustainably and paying your creditors off at a rate that is realistic for you.
Sure, the way you have handled your debts will be stamped into the public record, but once you get to the stage of having 1 ccj, an IVA is also not the end of the world.
If you have no defaults and you can pay a CCJ within 30 days, you could dodge bad credit. However, many people who have credit problems already have at least one default and are, as a result, excluded from many mainstream lenders and credit products.
Of further interest:
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Individual Voluntary Arrangements (IVAs) Frequently Asked Questions
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A Guide To Debt Relief Orders In The UK
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https://www.jubilee2000uk.org/analysis/jubilee-reviews
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