Thursday 20th of August 2009
Over the past 25 years, the average debt of Britons who seek monetary advice - which may include individual voluntary arrangement (IVA) help - has multiplied by 20, a newspaper has said.
Speaking to the Gazette Live, Joe Michna, the manager of Hartlepool Citizens Advice Bureau, said when he first started working at the organisation in 1984, not many people had credit cards and debt over £3,000 was rare.
Now, however, the average client debt has risen from £1,000 in 1984 to currently stand at £20,000, while some people even ask for help with debts of £50,000. In such circumstances, an IVA could prove to be of assistance.
IVAs may be able to be undertaken by people who owe more than £15,000 to a number of different creditors.
Mr Michna told the publication: "In 1984 the very first debt case I dealt with was for a couple with £450 worth of debt - one of my money advisers recently gave advice and assistance to a couple with total debts of over £100,000."
Getting IVA help to clear significant debts could be an important step for some Britons, who may want to avoid the stigma that could come with bankruptcy.
By Chris King
- 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 can be useful for those who are able to help themselves
