CCR Magazine

A gaping divide is opening up between the “have’s and have-not’s” as soaring personal debt pushes hard-working middle earners out of their comfortable lives and into hardship, warns debt solution website IVA.com.

“The huge leap in the number of people going under as shown by last week’s insolvency figures is a stark warning of what I believe will be a slide into a society increasingly divided by money,” said IVA.com director Terry Balfour.

Debtors contacting IVA.com’s helpline desperate for a lifeline to pull them out of the mire of multiplying debt come from a predominantly middle income professional background who have been working hard and living life in comfort.

They may not have been any more free with their spending than their friends or neighbours but some have fallen victim to the effects of the recession and some have not, mostly through unexpected job loss.

“Over the last 20 years or so average personal wealth has soared, thanks mostly to the property boom, and the standard of living that is now considered acceptable is much higher than it used to be,” said Balfour.

“But the recession has seen huge numbers of consumers plunge from being comfortably off to having absolutely nothing whilst others have been more fortunate and continue to prosper.

“The old class divide that used to clearly separate one man from another in the UK is much less prevalent in today’s politically correct society but it’s being replaced by another more insidious barrier.

“The recession may be officially over and the economy poised to approach a corner, albeit not going round it yet, but there many people who will never recover and move forward again,” he added.

“The distribution of wealth amongst ordinary middle earners has tipped and we are likely to see more people slide the same way this year as the fall-out of the economic crisis continues to pick off victims.

“Seeking help as soon as possible is the only option. It may take years to get out of debt and they may never regain their former lifestyle but they will stop a desperate situation from getting even worse.

“There are many first class professional organisations with a wide range of solutions which can provide immediate help - all it takes is a phone call to set the ball rolling,” said Balfour.

IVA.com offers truly independent, unbiased guidance and is the first port of call for applicants looking for help with debt management. There are over 1,000 debt solution firms and insolvency practitioners listed on the company’s database, covering the whole of the UK.

This service enables consumers to read candid reviews of insolvency practitioners by current and past clients so that they can make informed decisions on which IP they believe is most likely to be able to provide the service they want and need.

Choosing the best IP, based on recommendation and research, is absolutely vital if people are to deal with their debts effectively. The wrong choice could see them suffer for longer and ultimately, lose everything.

(Source - IVA.com Press Release)