Skip to main content

Debt Talk: DRO or IVA? That is the question...(Podcast)

Debt Talk: DRO or IVA? That is the question...(Podcast)

One in 422 adults entered insolvency between 1 July 2022 and 30 June 2023. The economic factor is crucial in considering bankruptcy for many individuals, particularly when personal Individual Voluntary Arrangements (IVA) and Debt Relief Orders (DRO) are concerned. In this episode of the Debt Talk podcast, Ripon Ray explored: ‘DRO or IVA? That is really the question...’

Sara Williams, the founder of Debt Camel, began the conversation by looking at the history of bankruptcy and IVA leading up to the introduction of DRO in 2009, the commercial drive for many IVA providers to solely provide the only option who do not consider the interest of consumers through to its sales tactics and providing misleading information to entice consumers. There are early IVAs termination due to unsustainability for many low-income households. She also provided recommendations for short and long-term changes to regulations to consider for the interest of indebted communities.

Kevin Still is the CEO of Debt Managers  Standards Association Limited (DEMSA), a trade body for debt solution providers. He emphasised the importance of coming together and tightening the quality and compliance framework to eliminate harmful practices. He recognised that community-free advice providers are essential in holistically delivering impartial service.

Both panellists provided TOP TIPS for listeners on such an important topic. The next topic is: 'The cost of fuel'.


Popular posts from this blog

Budgeting on Your Money Matters...with Ripon Ray

24% greater than on the eve of the financial crisis, Britons owe a total of £72.5bn on credit cards with £400m added to balances in November 2018 alone, according to the Bank of England. In such a mountainous backdrop, it's essential that regulators and the central government put financial education on top of the agenda for the well-being of communities who are struggling with money. On Your Money Matters show, I have tackled this exact issue by interviewing Michelle Turpin Cope, Money Trainer. She personally struggled to manage her money once she resigned from her job as a nurse due to stress and depression. She had devoted her life caring for NHS patients. Once her savings ran out, she had to turn to state benefits; otherwise, would have been destitute. The luxury of spending money on a cup of coffee every day, without realising the impact this purchase would have on her finances, was really an issue for her. Once she went on a money mentor training, she was forced to

A debt free path for a mental health sufferer

It’s a well-known fact that individuals who suffer from a hampered mental capacity - be it mental health or learning difficulties - are most likely to be vulnerable in our communities. They are also more likely to be victims of miss-sold products and services by companies, even though organisations that are providing financial products and services have a duty under the Financial Conduct Authority (FCA) to take extra care towards these individuals. This is what the FCA has to say about vulnerable customers: ‘  The vulnerability of the customer, in particular where the firm understands the customer has some form of mental capacity limitation or reasonably suspects this to be so because the customer displays indications of some form of mental capacity limitation  (see  ■  CONC 2.10) But due to a culture of intensive selling to consumers, generated by employers placing and enforcing - often difficult and unrealistic - performance goals which are attached to tempting

The Post War Welfare State is crumbling - who is to blame for it? Asks Ripon Ray

The current welfare state changed in such a way that a true reflection is required as to how this has come about and and its context. Post Second World War, the Attlee government nationalised  the Bank of England, the coal industry, the Central Electricity Generating Board and area electricity boards, Cable & Wireless Ltd, the railways and the local authority gas supply undertakings in England and Scotland. It introduced free education for all by nationalising institutions which were either provided by parishes or philanthropists. The National Health Service was formed and made accessible to everyone regardless of ability to pay.   If you were unemployed there was infrastructure to support you when you could not afford to pay by creating the welfare system as you see today. The expenses of running such a nationalised state was met by cheap loans borrowed from overseas, contributions made by tax payers and companies in times when Britain was losing imperial dominan