Wednesday 1st of September 2010
Individual voluntary arrangement (IVA) questions could provide invaluable information to Britons who continue to find it difficult stay afloat amidst mounting unsecured debts.
The latest statistics from Credit Action were released this week and highlighted the fact money troubles remain a huge problem for people in this country.
According to the figures, total UK personal debt at the end of July stood at £1,456 billion, which is more than the whole country produces in a year.
In addition, the data shows the average deficit, excluding mortgages, of households in Britain was £8,628, rising to £18,000 if unsecured loans are taken into account.
And the mean amount of cash owed by each adult in the country is now £29,918 - some 126 per cent of average yearly earnings.
With so many people so far into the red, it could be the number of individuals asking questions on IVAs is set to increase as they attempt to get their finances back on track for good.
This is because the method of insolvency helps those who are employed and have the means to meet around 60 reduced-rate monthly repayments clear unsecured debts worth more than £15,000.
As a result, Britons who were previously struggling to afford the cost of everyday essentials and paying back their deficit could find themselves completely debt-free and without the continued burden of cash problems weighing so heavily upon them.
Recent statistics from the Insolvency Service suggest the measure is, in fact, becoming popular - with a 10.2 per cent rise in the number of people embarking on an IVA in the second quarter of 2010 compared to the previous year.
Bankruptcies, which may be a less favourable means of insolvency than an IVA - depending on your situation - were down 20.6 per cent on the previous year.
By Hayley Jones
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