Friday 26th of February 2010
There may have been a surge in the number of people asking questions on individual voluntary arrangements (IVA) as the impact of the economic downturn hit many households hard.
New figures from the Citizens Advice Bureau (CAB) show that since the start of the recession it has helped at least 3.25 million people with their financial problems.
In England and Wales, 9,500 new debt problems are dealt with by the organisation every day.
Some of these problems may have been resolved by answers on IVAs.
Individuals who thought bankruptcy was the only option may have been surprised to hear that an IVA can help with unsecured debts of more than £15,000.
Furthermore, the fact they are going through an IVA can be kept quiet, unlike bankruptcy, which may result in local newspaper reports and an obvious home repossession.
"Even more people are now worried about the further pressures on their household budgets from rising prices and exceptionally high winter fuel bills," says chief executive of the CAB David Harker.
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
- Information on IVAs may assist debt-laden business owners
