| Whilst the effects that debt can have on | | | | course, a small set-up fee and/or |
| a person's life are well known, such as | | | | monthly fee will normally apply, but at |
| an inability to get credit and no | | | | least the debt is being given the |
| capacity to afford treats and luxuries, | | | | attention it requires before the |
| debt can also have a far more profound | | | | situation deteriorates. |
| effect on an individual beyond the | | | | Then there are IVAs (Individual |
| practicalities of life on the breadline. | | | | Voluntary Agreements). These allow the |
| In fact, the anxiety and stress caused | | | | individual to pay an agreed, reduced |
| by mounting debt problems can create | | | | amount of the total amount of the debt. |
| feelings of hopelessness and desperation | | | | After a set amount of years, the debt is |
| and can lead many people to depression. | | | | generally considered to be settled. As |
| Indeed, this can also work in reverse, | | | | this is a formal arrangement, an IVA is |
| with people suffering from mental health | | | | usually managed by a licensed Insolvency |
| problems and then subsequently going | | | | Practitioner (IP). |
| into debt due to their inability to | | | | The important thing to remember in all |
| work. It is estimated that one in four | | | | of this is not to panic or ignore the |
| people in Britain who suffer from mental | | | | problem, as unopened bills won't go |
| health problems are also in some sort of | | | | away, and it will probably only lead to |
| debt or arrears, so there is a clear | | | | the situation spiralling even further |
| link between mental wellbeing and | | | | out of control. It's always better to |
| financial capacity. And this is why it's | | | | pay a small amount than nothing at all, |
| important to take effective action as | | | | and this is why a debt management plan |
| early on as possible. | | | | is the best way forward for many people. |
| For anybody who is struggling to keep up | | | | Anxiety and stress caused by mounting |
| repayments, a debt management plan could | | | | debts can lead to mental health problems |
| be the best way forward from here on. | | | | in many people; but it's important to |
| These plans are typically administered | | | | tackle the issue of debt at the earliest |
| by specialist companies who negotiate a | | | | possible opportunity and ensure it's |
| set fee with each creditor. The debt | | | | managed and monitored in equal measures. |
| management company will then collect the | | | | Otherwise, what begins as a small |
| monthly payment and distribute | | | | problem can escalate and have |
| accordingly amongst the creditors. Of | | | | repercussions for years to come. |