Wednesday 24th of June 2009
Creditors are becoming increasingly less willing to negotiate with debtors about repayments and are instead resorting to "aggressive" tactics, according to new research, but an individual voluntary arrangement (IVA) could help.
In its Up to our neck in it report, issued ahead of this week’s Debt Summit in London, Capitalise revealed that repossessions increased by 40 per cent between 2007 and 2008.
Graham Fisher, chief executive of Capitalise member Toynbee Hall, commented: "Our advisors report that creditors are reacting to the debt crisis by passing on more cases to debt collection agencies and resorting to court actions or bailiffs."
But consumers can help to avoid home repossession by seeking IVA help. By restructuring debt repayments, an IVA could make it easier for you to keep up with your mortgage.
A list of debt management tips from the Blackfriars Advice Centre, published on the Capitalise website, states that the first thing you should do when in financial trouble is not to panic because there are a range of options open to you.
- 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
- Seeking advice "best policy" for debtors
