Thursday 2nd of September 2010
Information on individual voluntary arrangements (IVAs) could offer invaluable support for Brits who are finding it extremely hard to pull themselves out of the red and desperately want to get their finances back on track.
And it may be that now is the time to speak up and do something about their predicament, following figures from CallCredit.
According to research by the company, 69 per cent of people who have money troubles have never told their bank or building society about their situation, while 38 per cent struggling to get by do absolutely nothing to change their circumstances once they hit a rocky patch.
In addition, the figures show 42 per cent of UK adults have decided not to come clean about their cash problems.
An IVA may, however, be a favourable solution for those of you who owe more than £15,000 on unsecured credit cards and have the discipline to meet a series of reduced-rate, monthly repayments for around five years.
The measure cuts the money you owe on credit cards and personal loans, while ensuring the equity is protected on your family home and the details of your financial woe are not revealed to the local newspaper - as is the case with bankruptcy.
What's clear from the research, however, is that growing numbers of people have been struggling to get by in recent times - whether they tell anyone about it or not.
Some 65 per cent of the population have experienced some form of unexpected alterations to their financial situation over the past two years, the firm adds.
Commenting on the data, Graham Lund, managing director of Callcredit, says the numbers are very worrying indeed.
"What's particularly concerning is the number of people who fail to make their bank aware of sudden changes in their financial situation - and those that do get in touch aren't always completely honest," he states.
Mr Lund goes on to note: "It's therefore extremely important that financial service providers use information and tools available to proactively monitor any changes in their consumers' financial situation and have sight of the bigger picture."
By Mark Waterman
- 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
- IVA answers to help Brits avoid irresponsible lenders?
