Wednesday 29th of July 2009
More than half of the UK’s population is carrying an average £6,956 of non-mortgage debt, a new survey has revealed, although this amount could be reduced with individual voluntary arrangement (IVA) help.
The study by moneysupermarket.com found that 40 per cent of Britons have reduced their non-mortgage debt over the last year, many of whom may have used an IVA to do so.
However, 27 per cent of people have taken on more debt, with some individuals claiming that being in the red will always be a part of their life.
One option that may be available to some Britons is an IVA, which can break monthly repayments into more manageable chunks, which could soon see many households free of debt.
"Problems are easier to tackle when addressed early; those in their 20s and 30s should get into the habit of addressing their finances now to avoid financial difficulties later in life," advised Tim Moss, head of loans and debt at moneysupermarket.com.
An IVA is another option to bankruptcy. Peter Sargent, a partner at insolvency specialists Begbies Traynor, has told the Daily Mail that he expects personal insolvencies to rise over the next two years as more people default on their credit card repayments.
By Rachel Powell
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- Worried about rising utility bills? IVA answers may offer assistance
