Monday 13th of July 2009
Individual voluntary arrangement (IVA) advice may be sought by an increasing number of Britons.
However, Citizens Advice reported that more people require legal help when it comes to housing, employment and relationship concerns.
A new report from the organisation revealed many individuals are unable to sort out legal issues because of long waiting times and complex accessibility criteria for legal aid.
Chief executive of Citizens Advice David Harker said: "Too often we see people discouraged from pursuing their cases because they are faced with access barriers such as travel distance, long waiting times for appointments and complex eligibility criteria."
Individuals concerned about debt may find that IVA advice is easier to access, although one financial expert has said borrowers must take responsibility for their own financial situation.
A spokesperson for moneysupermarket.com recently said that people should not apply for more credit if they know they will struggle to pay it back.
For those individuals who have obtained more credit than they can afford, an IVA could freeze climbing interest on debt and reduce monthly repayments to a more manageable level, which could avert the need for further action such as a bankruptcy claim.
- 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
- Is £8 extra a week enough to repay your debts?
