Tuesday 2nd of March 2010
Individual voluntary arrangements (IVA) could prove beneficial for those of you in debt who are worried about your home getting repossessed because of climbing credit card and personal loan borrowings.
The latest Credit Action statistics show that a property in the UK is repossessed every 11.4 minutes.
Such a situation could be made worse by the fact that 1,841 individuals are made redundant in the UK every day.
The consequences of bankruptcy could be too much for you to contemplate - the potential loss of a family home, a quite-often public announcement in local newspapers and, in some cases, being barred from your career.
One person every 3.69 minutes will be declared bankrupt or insolvent today (March 2nd), the Credit Action report reveals.
Some of these people may have decided to get their questions on IVAs finally answered and undertake the repayment plan in order to clear their unsecured debts of more than £15,000.
Indeed, each working day 1,000 individuals seek some type of formal debt rescheduling plan, which may include an IVA.
As well as the burden of carrying around such a large debt, you may also be concerned about the increasing frequency at which your creditors contact you.
The Credit Action statistics show that 230,137 unsolicited phone calls are made to consumers every day by personal loan companies and debt management firms.
Under an IVA, your borrowers are not allowed to take further court action as long as you are keeping up with your repayments.
Furthermore, all contact must be done through your specialist IVA negotiator, leaving you to concentrate on repaying your debt, rather than fielding phone calls, letters and doorstep visits.
This could be particularly reassuring if you have young children and are worried about the impact that constant contact from creditors also has on them.
By Kim Parsons
- 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 offers cash-strapped Brit 'a way out of debt woes'
