Friday 19th of June 2009
Consumers who are struggling with debt should seek advice as a number of solutions are available to them.
That is the opinion of Chris Tapp, director of charity Credit Action, who explained that individual voluntary arrangements (IVAs) and debt relief orders can offer ways to pay off what is owed.
And although some people may have to file for bankruptcy, he recommended seeking advice over the steps that could be taken to avoid this.
"There is a whole range of options for people who have difficulty with debt," said Mr Tapp, adding that communication with creditors is important in order to make them aware of any difficulties.
In addition to IVAs and debt relief orders, he pointed to debt management plans as ways for borrowers to reduce what they owe by establishing "an affordable payment schedule".
Liberal Democrat MP Jo Swinson recently argued that the high level of personal debt being faced by Britons is having an effect on mental health.
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- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- IVAs may be ideal for merging all your unsecured debt
