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IVAs (Individual Voluntary Arrangements) are already becoming a last resort for many people in the UK. The steeply and constantly rising cost of living is taking its toll on the working, as well as middle and even upper-middle, classes. With redundancy, doom and financial gloom becoming a common story IVAs are being taken up by increasing numbers of people and households, who previously never considered IVAs an option.

The news that both N Power and E.ON are set to join British Gas and Scottish Power in the hiking of gas prices is another low monetary blow which could drive even more people towards starting IVAs.

There has been a 30% rise in wholesale gas costs since early 2011. This is a shocking figure which, combined with the frightening rise in the cost of basic, everyday essentials like food, electricity and petrol, could financially cripple people to the point that they require IVAs.

IVAs may sound like drastic and desperate options but often, as a last resort, they can be effective, albeit long-term solutions to debt problems. With IVAs you can eventually write off all of your debt, legally, without needing to resort to more desperate tactics like declaring bankruptcy.

As a rule, IVAs last something like 5 years, although this depends on the IVAs and the debtors personal financial circumstances. They are generally used by people who owe more than £15,000 to a number of different creditors.

IVAs take the heat off debtors and mean that the multiple creditors that owe money to can no longer pressure them. Many people who are living with IVAs, whether they are linked to gas prices or not, find that IVAs significantly reduce the stress of living with debts.

Debts have been shown to cause significant amounts of emotional stress and have been known to cause depression and even suicide. IVAs can help to make your debts seem more manageable. Not only do IVAs eliminate any immediate pressure from creditors, they also allow you to pay off your debts at a manageable rate.

If you are concerned about what rising gas prices, or the rising cost of living in general, means for your finances it is worth investigating IVAs. Understanding your options can make you a more informed and canny manager of your finances. IVAs aren't the only debt solution out there, but they are the most popular and often the most effective.

If you are interested in IVAs or if you have any questions about IVAs there are a plethora of resources available to you. The web is often a good first port of call as it is full of groups who are ready to help with any queries or questions you might have about IVAs. Sites like http://www.iva-service.co.uk are particularly good and have a dedicated team of IVA advice professionals ready and able to help online or on the phone. Visit the website or call their expert helpline on 02920 346 536 today.

By Andrew Liberty
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