For those who are experiencing financial difficulties, finding a way to pay back the money they owe can take over and even destroy people’s lives, affecting families and relationships and not just the personal who owes the money. But for those who are experiencing serious financial debt of £15,000 or more, they could consider an Individual Voluntary Arrangement, or an IVA, as the best solution to their debt.

With so many people living beyond their means, IVAs are becoming an increasingly popular solution to debt. Rent/mortgages, council tax, energy bills, petrol costs, food, car/house insurance and mobile phone contracts are just as few of the financial commitments people are facing everyday, and this can all amount to a cost of living many people simply cannot afford to keep up.

But on top of those more essential out-goings, many carry on spending vast amounts of money on more insignificant and leisurely pursuits such as holidays, clothing, days-out, televisions, toys and other gadgets which are comparatively non-essential. This level of personal spending is creating a new generation of frivolous spenders who increasingly find themselves in serious debt because they cannot seem to control their spending habits.

So exactly what is an IVA? An IVA is a legal agreement that could write off up to 75% of personal debt, and is often used as an alternative to bankruptcy which benefits both the debtor and the one to whom money is owed. And because the arrangement involves an insolvency practitioner who acts as a middle-man, any contact between the debtor and the creditor is gone, putting less strain on the person in debt.

So, for those who are in considerable debt, and owe £15,000 or more, then an IVA could be the best solution. Whilst budget management should be at the top of the financial agenda, for those who already find themselves struggling with debt, an IVA could be the best way to deal with their personal debt.