Wednesday 1st of July 2009
Individual voluntary arrangement (IVA) help could be required for many Britons after the latest debt statistics reveal the average owed by each person - including mortgages - is £30,480.
The report by Credit Action stated that this equates to 132 per cent of the average UK wage, which could highlight the importance of getting IVA advice before the situation deteriorates.
Average household debt in the UK stands at £58,360 when mortgages are included and interest paid out on total debt is approximately £2,650 every year.
Households which find the interest repayments on their personal debt - such as store cards and loans - difficult to keep up with may benefit from an IVA. An IVA could freeze interest rates on unsecured loans and store card charges, making household finances easier to handle.
The report also noted that one in 33 people are expected to become unemployed this year.
Recent figures from the Office for National Statistics revealed that in the three months up to April, 2.26 million people were out of work.
- 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
- IVA questions could put an end to debt complacency
