Wednesday 9th of September 2009
Individual voluntary arrangement (IVA) advice could be on the radar for some Britons after one financial expert says the combination of unemployment with lower incomes has plunged thousands of Britons into trouble.
The Consumer Credit Counselling Service (CCCS) states that people’s debt problems have become more complicated than they were in the past, although one solution could be an IVA, if thousands of pounds of debt is owed to a number of creditors.
Frances Walker, a spokesperson for CCCS, explains that for 30 per cent of people the group sees, there is no recommended solution apart from to raise their income through renting out rooms or taking on a second job because they do not have enough cash to enter into an agreement.
An IVA can be cheaper than going bankrupt, however, and many households in debt could have the cash to pay the fees required to undertake an IVA.
Ms Walker adds that "the problem we are finding is that people, who are over indebted, are having more difficulty paying their debt back and we’re not expecting this to change for some time".
Recent figures from the Trades Union Congress showed that Britons who are in low-wage jobs have been hit hardest by the recession, especially the retail sector.
By Rachel Powell
- 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
- IVAs may be the first step to positive credit ratings
