Monday 15th of March 2010
Individual voluntary arrangement (IVA) answers were given by one charity as it reveals the amount of debt that people asked for help about.
The Consumer Credit Counselling Service (CCCS) reports that last year 56.9 per cent of its clients found themselves with debts of less than £20,000.
Britons who owe more than £20,000, or indeed, £15,000 or over, may find an IVA helps them get out of their financial black hole.
An IVA can freeze the interest rates on unsecured debt, while monthly repayments are merged into one, more affordable amount which people are better able to keep a grip on.
The organisation reveals that a quarter of people who asked for help were able to undertake an IVA or a debt management plan.
Commenting on the report, CCCS chairman Malcolm Hurlston says: "For many 2009 has been a tale of pain deferred, but if unemployment rises we can expect many more households to come unstuck this year, irrespective of whatever is happening in the greater economy."
Undertaking an IVA now could prevent unsecured debt from worsening, which may be especially comforting for households which are worried about the future threat of unemployment or unexpected costs.
By Hayley Jones
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