Tuesday 11th of May 2010
Debt relief orders (DROs) remain popular in Britain, new figures show, with thousands of people embarking on them as a form of insolvency.
According to the Insolvency Service, some 5,644 DROs were taken on in the first quarter of the year - out of a total 35,682 individual insolvencies in England and Wales.
DROs have only been around since April last year, but give you the chance to cut down your debts if you owe less than £15,000, have assets worth less than £300 and bring in no more than £50 a month.
However, if you’re deeper in the red and owe over £15,000 on personal loans and credit cards, an individual voluntary arrangement (IVA) may be a sensible choice.
IVAs take around five years’ hard work, but could leave you debt-free and in full control of your money after this period of time.
And you might find yourself with the peace of mind that you can meet the cost of essential everyday items and rent for your family home without having to budget for the burden of unsecured debts.
By Kimberley Parsons
