Monday 15th of March 2010
Individual voluntary arrangement (IVA) questions were asked by many of the cash-concerned customers who contacted one debt organisation for help about their credit cards and personal loans.
A new report by the Consumer Credit Counselling Service (CCCS) reveals that last year, credit cards accounted for 46.3 per cent of the UK’s debt.
In second place were personal loans, which represented 39 per cent of the debt that struggling Britons asked for help with.
Some of these clients were advised to undertake an IVA, which can be used to clear debts of more than £15,000 accumulated on a number of different unsecured personal loans and credit cards.
IVAs can also be used to reduced store card repayments and interest rates.
Indeed, the recession seems to have pushed many households into the red when previously they kept their heads above the water.
"It is rare for an annual review to reflect such rapid change. The new penury has struck many people who would ordinarily not have fallen into debt on the basis of their borrowings alone," explains chairman of the CCCS Malcolm Hurlston.
But an IVA could soon help pull people out of serious debt and into a more stable long-term future.
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
- Celeb chooses IVA over bankruptcy
