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