Friday 4th of September 2009
Record numbers of people from Scunthorpe are losing their homes as personal debt levels soar, a claim suggests, although seeking individual voluntary arrangement (IVA) advice could avoid the need to give up a property.
John Burnett, from the Citizens Advice Bureau, tells the Scunthorpe Telegraph that the organisation is always inundated with people with debt worries and these have now overtaken the number of clients wanting to know what benefits they are entitled to.
The recession and the tight restrictions on Britons being able to get credit means they can no longer "borrow their way out" of a problem, he notes. As such, people may be better off asking for IVA help, rather than relying on credit cards and loans.
"It’s unfortunate that some people are so hopelessly over-extended that they are going to lose their home eventually," Mr Burnett states.
An IVA could, however, avoid the need for a home to be lost, as by breaking debt down into more manageable monthly chunks, Britons may be able to reassure their creditors that they will get paid.
Recent Bank of England figures showed that credit card lending increased in July by £0.1 billion, although personal loans fell.
By Chris King
- 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
- Credit cards reducing your financial safety net? Researching information on IVAs could make a big difference
