Tuesday 26th of January 2010
Individual voluntary arrangements (IVAs) could be required by a growing number of Britons after a new survey reveals that the level of personal debt is the biggest worry for the majority of people.
The latest Nielsen-British Retail Consortium (BRC) Consumer Confidence Survey shows that over the next six months, personal debt - which includes credit and store card bills - will be the largest concern individuals will have, although getting their questions on IVAs answered could highlight to them a way to start clearing what they owe.
Half of those questioned believe that the recession will still be here at the end of 2010. With such an opinion, people with unsecured debts of more than £15,000 may decide now is the right time to repay what they owe, something an IVA could help with.
Household coffers are currently strained for many UK households and an IVA can relieve some of this pressure by merging different unsecured debts into one, monthly, lower-rate balance, making it that bit easier for repayments to be met.
Justin Sargent, managing director at Nielsen Consumer UK, says: "The number of people saying they are saving is at the highest the consumer confidence survey has ever recorded and people remain very concerned about the amount of debt they are shouldering."
By Rachel Powell
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