Friday 13th of November 2009
More than 12 million Britons are hiding some form of unsecured debt - whether it be credit card loans, overdrafts or store cards - from their loved ones, so may benefit from the use of an individual voluntary arrangement (IVA).
New research by AXA shows that 24 per cent of the population are hiding debt, with the average amount totalling more than £4,000.
Even more people, some 40 per cent, will lie to their partner, friends and family about the state of their finances.
Alison Green, an AXA spokeswoman, said that people often hide debts because of "embarrassment, fear or in some cases ignorance". She added: "The important thing is for people to take control of their finances and get the help and the support they need."
IVAs aim to tackle unsecured debts of more than £15,000 by freezing interest rates and restructuring monthly repayments to reflect what a debtor can afford.
This could be advantageous to indebted Britons worried that their debt could spiral out of control.
By Hayley Jones
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- 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
- Low interest rate plus IVA advice could mean a head start on mortgage payments
