Monday 1st of November 2010
There may be a rise in the number of people asking individual voluntary arrangement (IVA) questions as they look for ways to clear their personal debt, following the release of arrears figures.
Statistics published by Credit Action revealed Brits owed a combined total of £1,455 billion at the end of September this year.
That figure amounts to more than the country produces in a whole year and represents a 12-month rise of 0.8 per cent.
In the second quarter of 2010 the write-off rate on lending to Brits by UK financial institutions increased to 7.4 per cent, while total lending for the month grew by £0.4 billion.
Questions on IVAs could help those people who are in the red by over £15,000, as the debt reduction service allows individuals to freeze interest on their debts and consolidate the amount they owe into a manageable monthly payment.
The arrangement typically takes five years to complete, meaning those who decide to use this method must be serious about resolving their financial difficulties.
By Rachel Powell
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