Where can you find help for your IVA questions?
There are many different types of individual voluntary arrangements (IVAs) including single, joint or assisted IVAs, business IVAs or lump sum IVAs. If you are considering applying for an IVA you may have questions or require help. There are many places you can find help or information about individual voluntary arrangements.
Specialist IVA websites
A specialist IVA website may be able to give you advice about how much you may be able to afford on a monthly basis if you choose to enter into an individual voluntary arrangement.
Many websites have online calculators to help you work out your monthly income and outgoings. Individual voluntary arrangement payments are based on how much you can afford to pay after you have paid your essential monthly expenses. These may include mortgage or rent payments, grocery bills, telephone and mobile bills, house insurance, gas and electricity payments, council tax and water rates.
IVA payments do not take into account non-essential spending such as social activities, alcoholic drinks or smoking. A specialist website may be able to give you advice on cutting back spending on these items.
You may also be able to get advice about the different types of individual voluntary arrangements. If you have joint debts with a partner, husband or wife then assisted or joint IVAs may be appropriate for you. However if you run a business then you may be considering a business IVA.
Insolvency practitioners
If you are applying for an individual voluntary arrangements then your assigned insolvency practitioner may be able to give you help and advice on putting together a reasonable payment proposal to put to your creditors. Your creditors may consider these proposals or ask for changes to be made.
Helplines
Many specialist debt websites also offer confidential helplines for you to get help and advice about entering into single, joint , assisted IVAs and business individual voluntary arrangements. If you are considering applying, it may be of help to you to discuss any questions over the telephone.
Confidence and casualties affecting the UK commercial property sector
Low confidence surrounding the UK economy is affecting values in the commercial property sector.
The Q3 UK Quarterly Property Index from real estate analysts IPD showed that falling demand reduced capital growth to just 0.3%. The fall is being attributed to high inflation, austerity measures (including taxation), weak growth and low confidence in the UK’s ability to avoid a double-dip recession.
The Research Director, Malcolm Frodsham, reported that purchase activity remained strong, despite the copious supply of commercial property in London. “Buyers are not just high net worth individuals and international investors”, he noted. “Various UK funds have also been investing, chasing the now all important income return”.
It has been observed over recent months that investment arms have become keen to fill the gap in residential and commercial property following the withdrawal of banks and traditional lending sources.
However, retail difficulties continue to affect the value of buying a property in the UK. The regular falls in rent for shopping centres have eventually led to a decline in value for the first time since autumn 2009. As Frodsham observed:
“Rental falls for the segment, which have been ongoing for 12 consecutive quarters, now amount to 11.1%. Standard high street retail units outside of the South East, have now seen a cumulative fall in rents of -10.6%”.
Only supermarkets were reported as bucking this trend to increase in capital growth, “due to their a-cyclical tendencies in a period of falling consumer spending”.
Capital growth of commercial property in Central London, which has remained strong in recent years, is declining.
This news comes as the Confederation of British Industry reported a severe dip in confidence over the last quarter, with retail the sector worst hit. UK company liquidations in the third quarter exceeded 4,000 to reach a two-year high. Hence, concerns are mounting that a double-dip recession may be forthcoming, which would bring ineluctable consequences for the commercial property market.
Debt Consolidation Loans
When people have significant debts, they look into the debt relief programs that can help them reduce those obligations. Two of the most common debt relief programs are unsecured loans and secured loans.
Unsecured Loans
With unsecured loans, financial institutions loan money to people who do not have anything that can be used to re-pay the loan should the borrower stop making payments. Because there isn’t going to be anything that these lenders will have the authority to sell to pay the loan in full, they will be entitled to charge a higher interest rate on the borrowers’ monthly payments.
How Unsecured Loans Are Beneficial
Unsecured loans are risky for both the lender as well as the borrowers. If the borrowers default, their credit is affected detrimentally into the future as people refuse to offer them credit. But, the unsecured loan can also force people to be disciplined with making their payments on time every month. As long as these borrowers make their payments on time, their credit scores can only increase.
If people have no other alternatives, the unsecured loan may be a positive financial proposition because they will know how much their payments will be for the entire length of the loan, and this adds predictability to their lives.
Secured Loans
With a secured loan, on the other hand, the borrowers do have property they can offer to the lender that will be collateral securing the loan. Because of this, the interest rate will be lower than for the unsecured loan. The most common form of collateral is a house or a car but if people have other assets such as jewelry, stocks and bonds and electronic equipment, they may be able to find a lender who will accept these assets for securing the loan.
Where to Find a Secured Loan
A secured loan that has a house as collateral would be relatively easy for people who need a debt consolidation loan, but it is also possible for them to find a lender who will accept the other forms of collateral mentioned above. To qualify for the secured loan with less common types of assets, the current value of these assets must surpass the amount of the loan as well as the interest that will be paid. When this is the case, the lender can be assured that selling the item will return to them what is owed by the borrower.