Tuesday 26th of January 2010
The latest figures from the Office for National Statistics may show that the UK is officially out of the recession, but the impact on those with high personal debt levels will cause problems for some time to come, a claim suggests.
Individual voluntary arrangements (IVA) could still need to be undertaken by many more households, after the Citizens Advice Bureau reports that it is still helping some people who were hit hard by the last recession.
Repaying debt through an IVA can take up to five years and so Britons who have chosen this type of repayment plan may still want to maintain a lease on their finances to ensure they keep up with repayments and avoid the risk of losing their home.
"In particular bureaux are seeing large numbers of people struggling to cope as a result of losing their job or having their pay or hours reduced, in turn leading to difficulties managing loan repayments and pay increasing bills," explains Citizens Advice chief executive David Harker.
He adds that many of these individuals have had to deal with the aftermath of losing their home.
Unlike bankruptcy, an IVA could be one answer of how to protect a property so long as the new, monthly, frozen-interest repayments are kept up with by Britons.
By Ashley Littley
- 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
- Consumers "have to be disciplined" to avoid mounting debt
