Builders & HGV drivers face debt nightmare

Workers in two of Britain’s key trades are being driven deeper into debt as jobs in construction and road haulage are cut in response to the worsening economic outlook, says debt solution comparison site IVA.com.

The number of workers in the building trade calling IVA.com for professional help with their debts is steadily climbing as the brakes go on house building, movement in the housing market grinds to a halt and people shelve home improvements due to lack of funds.

In the same boat are a growing number of HGV drivers whose income has dried up as road hauliers are forced to cut costs to cope with the astronomical increase in diesel.

“In the past when borrowing was cheap and easy and the rise of the housing market seemed unstoppable, work for the building and construction trades was plentiful. But for those who relied on this trend continuing and lived beyond their means, the downturn we see today has left them high and dry,” says IVA.com’s director Terry Balfour.

Oil prices continue to remain at record levels and despite the Chancellor’s decision to postpone the 2p rise in fuel duty, the transport industry is staggering under the increased burden of unavoidable costs.

“There’s been a lot of talk about the credit crunch over the past year but I would say it’s only now that the effects are really hitting their target and ordinary workers and business-owners are taking the blows.”

Balfour’s comments echo the findings of a recent survey by the Federation of Master Builders which show the construction industry to be suffering the lowest levels of demand for a decade.

Small firms, in particular, are finding the current climate very difficult and expect their workload over the next two quarters of 2008 to fall even further. This follows research from the Office of National Statistics which showed overall construction levels fell by 19 per cent in June alone.

But with the alarming rise in the number of UK consumers struggling with huge debts, the shame and stigma of being in deep debt is waning.

“Debt is now a fact of life and managing it is a mainstream activity,” says Balfour. “It’s something to be dealt with so that people can recover and move on with their lives.”

IVA.com is a first port-of-call for anyone who has accumulated more debt than they can cope with. After explaining the details of their financial situation, callers are directed towards an insolvency practitioner who is best placed to provide the most beneficial professional help. This could be one of a number of options including an IVA (Individual Voluntary Arrangement), debt management plan or bankruptcy.

Unlike the bigger debt solution firms, IVA.com is small enough to be able to provide callers with a personal, one-to-one service that will refer them to the most appropriate option, not the one that’s going to earn the adviser the biggest fees.

“Our aim is to find the solution that is best for the individual, otherwise it’s not going to work, and that’s no good for anyone,” says Balfour.

“No-one gains from giving bad advice. That’s why the feedback available on our site from those who have used us is so valuable. And as well as directing people to genuine and practical solutions, it’s very comforting to discover that others have been in a similar situation and come out the other side.”

There are nearly 1,000 IVA providers listed on IVA.com’s database covering the whole of the UK. The service allows clients to find an insolvency practitioner who is close enough for them to meet face to face and ensures they don’t leap from the frying pan into the fire by putting their financial security in the hands of a firm that cannot deliver.

And most importantly, it weeds out the few who don’t have their clients’ best interests at heart.

For more information, visit iva.com