Saturday 25th of September 2010
Answers on individual voluntary arrangements (IVAs) could help those whose borrowing has spiralled out of control.
David Rodger, managing director of the Debt Advice Foundation, observed the last ten years have seen inadequate checks being carried out, resulting in consumers receiving credit despite not being suitable.
He highlighted the importance of borrowers being able to meet repayments, suggesting assessments must ensure criteria are met.
Those who have borrowed more they can afford may benefit from IVA answers, which can show consumers owing more than £15,000 that they can become debt-free after five years of hard work and dedication.
And the form of insolvency could represent an alternative to loan sharks that charge high rates of interest, with Mr Rodger noting a Financial Inclusion centre report recently identified a 22 per cent increase in the use of this source of credit in the three years to 2009.
"If this trend continues we are likely to see more and more people seeking debt advice," he said.
By Neil Burton
- 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
- IVAs could tackle the average 21k debt of households with unsecured loans
