Friday 5th of March 2010
A "new generation" of people have found themselves in debt because of the economic downturn, a claim suggests, something which may indicate the need for more individual voluntary arrangement (IVA) questions to be asked.
It is "unrealistic" to think that Britain will be free of debt within five years, Teresa Perchard, director of policy at Citizens Advice, said.
But individuals who undertake an IVA may, in fact, find themselves without debt within five years, as an IVA can freeze the interest on borrowings, making it easier to pay back.
While an IVA can help clear debt within around five years, people should still remember that a mark will be left against their name on their credit file.
However, getting debt help as soon as possible could prove essential for many families.
Speaking at the Northern Money Conference 2010 at the Contemporary Urban Centre in Liverpool, Ms Perchard said: "Child poverty, pensioner poverty, fuel poverty have all grown almost uncontrollably over the last couple of years."
Britons who before the recession were not seriously in debt but have since seen their coffers tip into the red may decide that an IVA can help them organise their finances.
By Ashley Littley
- 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
- Divorce debt may be wiped out by IVA
