Wednesday 1st of April 2009
Those struggling to repay their debts have been advised to seek advice in order to find the best way to deal with their situation.
Consumer campaign group Which? suggested that doing so could help debtors find a non-borrowing solution to their problems.
It highlighted the new debt relief order, which comes into effect on April 6th, as an alternative to bankruptcy and individual voluntary arrangements (IVAs).
Which? explained that such orders carry reduced fees and are aimed at those on low incomes with debt of less than £15,000.
However, anyone who does not meet the criteria may need IVA help and the body therefore urged borrowers to take independent advice on board.
Earlier this week, Sue Edwards of Citizens Advice told BBC Radio 4’s Money Box that 50,000 people could be eligible for debt relief orders.
Welcoming their introduction, she said they offer "light at the end of the tunnel" for debtors.
