Thursday 1st of October 2009
The average British adult has £4,760 worth of unsecured debt, according to the Credit Action report for October.
Debts include spending on credit cards, motor and finance deals, overdrafts and personal loans.
Consumers with unsecured debt may find an individual voluntary arrangement (IVA) proves useful, providing they owe at least £15,000.
And this could be the case for many people, as the report states that the average UK household owes over £58,000, including mortgages.
IVAs can be an attractive way of repaying unsecured borrowings in a realistic timeframe and in manageable sums.
The Credit Action report also states that 21.9 million card transactions will be carried out in Britain everyday with a total value of over £1 billion.
An IVA could be the ideal way for consumers using their plastic too often to pay back what they owe before the threat of bankruptcy looms.
It is also worth considering that an IVA is confidential so, unlike in bankruptcy cases, your financial affairs will not become public knowledge.
By Rachel Powell
- 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 help repay post-Christmas debt
