Tuesday 1st of September 2009
Individual voluntary arrangement (IVA) help offered to Britons could be working, after new figures from the Bank of England reveal that lending fell in July.
The official statistics show that total net lending to people declined by £0.6 billion, which may highlight how financial virtue could come from being more aware of personal debt.
Personal loans and other advances fell by £0.3 billion, while the annual growth rate of consumer credit continued to decline.
However, credit card lending increased by £0.1 billion in July, which could also suggest that further IVA help is required in order to reduce the debt levels in the UK. An IVA can freeze the interest rate on credit card debt, giving people a helping hand to clear their balances and stop topping up their plastic debt.
Commenting on the figures, Peter Harrison, head of credit cards at moneysupermarket.com, says: "It is encouraging to see a reduction in UK consumer debt levels although this doesn’t mean that the love affair with credit is at an end."
By Mark Waterman
- 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 answers could benefit those with shrinking disposable income
