Bank finance articles and tips

Companies in the United Kingdom who offer help with debt problems must hold a Consumer Credit Licence, which is issued by the Office of Fair Trading (OFT). This includes firms who offer debt management plans, or Individual Voluntary Arrangements, or who negotiate with creditors on behalf of borrowers.

When you are drowning in credit card debt, sometimes it can seem as though bankruptcy is the only possible outcome. However, many card banks do offer alternative arrangements, including partial credit card settlement, workout agreement, or even simply a short-term bill reduction. These arrangements can make the difference between bankruptcy and keeping your finances afloat.

While these alternatives do sound like the perfect solution, there is a catch: credit card negotiation can be a long, arduous process. It is something that consumers can tackle themselves, but those in debt should expect to face a series of long phone calls and a frustrating search for random details of your financial history.

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.

A recent study has shown how the high costs of childcare as well as the travelling costs associated with commuting are making it impossible for many women to return to work. Even a fulltime job could leave them out of pocket, something those families currently undergoing IVAs (Individual Voluntary Arrangements) clearly can't afford.

The study shows that the amount of women who are staying at home to look after their children rather than going to work has risen by 32,000 compared to the same time last year.

The research is based on data in the latest ONS Labour Force Survey and focuses on the number of women classified as economically inactive due to caring for their family. Those families with IVAs in place are finding it difficult as a result to improve their financial situation.