Wednesday 2nd of December 2009
Individual voluntary arrangement (IVA) advice could be on the cards for an increasing number of Britons, after Citizens Advice released its latest debt statistics.
Debt and benefit concerns are increasing at an annual rate of 21 per cent, while between April 2008 and September 2009, advisers dealt with 3.06 million debt problems.
Citizens Advice previously revealed that the average debt of its clients is £20,000, an amount which can qualify for an IVA. IVAs can help reduce unsecured debts of more than £15,000 and are considered a more favourable option than being declared bankrupt over similar amounts.
"Every community is experiencing a change in circumstances. These new statistics show how many people are struggling as a result of losing their job or a reduction in pay or hours, leading to difficulties managing loan repayments," comments Citizens Advice chief executive David Harker.
Britons who are struggling to cope with loan repayments may find an IVA proves to be of assistance. An IVA can merge all repayments into a single and more manageable sum, as interest rates will be frozen, preventing loan balances from spiralling out of control.
By Kim Parsons
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