Tuesday 1st of September 2009
Latest findings from Credit Action reveal that average household debt in the UK, excluding mortgages, stands at £9,226, a figure that an individual voluntary arrangement (IVA) could help with.
IVA advice could be required after the report also shows that when unsecured personal loans are taken into account, this sum rises to £21,457. However, undertaking an IVA could mean that households put the brakes on climbing interest on personal loans.
When the financial burden of mortgages is added, this statistic soars to £58,280, although should the interest rate set by the Bank of England increase from its current 0.5 per cent, people on tracker mortgages may fall further into the red.
Britons seriously in debt may want to obtain IVA advice as soon as possible, after the Credit Action statistics show that over 3,000 people are made redundant every day, which could hinder a household’s ability to meet all their financial commitments.
People who have taken out unsecured loans to see them through the recession may particularly need IVA advice, after recent research from moneysupermarket.com revealed that despite an interest rate of 0.5 per cent, consumers are being charged much higher interest rates for personal loans.
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
- IVA questions may assist cash-strapped single parents
