Friday 30th of July 2010
Britons struggling to overcome their debt problems may need to seek individual voluntary arrangement (IVA) information, as research has shown many continue to rely on borrowing.
The latest figures from Credit Action revealed personal debt continues to grow at an annual rate of 0.8 per cent, with the total at the end of June standing at £1,457 billion.
Among households with some sort of unsecured loan, the typical amount owed - excluding mortgages - is more than £18,000.
Such people could benefit from IVA information, as this form of insolvency can help those who owe over £15,000 to three or more creditors.
Although an IVA requires a significant level of commitment and hard work, it can enable a borrower to become debt-free after a period of 12 months.
Credit Action observed the amount borrowed is now above the value of what the UK as a whole produces in a year.
By Ashley Littley
- 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 be the best solution for lenders and borrowers
