Sunday 26th of September 2010
Individual voluntary arrangements (IVAs) could help Brits who have struggled to adapt to the economic climate.
Editor of CashQuestions.com Annie Shaw observed many people have not become accustomed to a lower level of spending.
Financial commitments made before the downturn started have resulted in an "overhang", she suggested, with consumers having to tighten their belts.
But some have been unable to adapt, with Ms Shaw explaining: "[People] are possibly trying to borrow to maintain their standard of living, which is not a sensible thing to be doing in this economic climate."
IVAs can help those who owe more than £15,000 get back on track. Typically lasting five years, they allow borrowers to manage their debts through one affordable monthly repayment, although a significant commitment is required.
Recent research by R3 revealed 40 per cent of people in the UK are worried about their level of debt, with the proportion rising to 49 per cent in London.
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
- IVA FAQs a good source of information for debt-laden older adults?
