Friday 23rd of October 2009
Britain is now embroiled in its longest recession on record, reports the Guardian, so consumers badly affected may want to seek individual voluntary arrangement (IVA) advice to help clear their debts.
New government figures show the country’s gross domestic product dropped by 0.4 per cent in the last quarter to September 30th.
The recession appears to be hitting all walks of life - with the service sector shrinking by 0.2 per cent, industrial production falling 0.7 per cent and hospitality suffering a one per cent decline.
And with more businesses struggling to keep going, the knock-on effect could be serious debt worries for plenty of Britons.
This week almost two-thirds of UK residents in serious debt admitted to being unable to sleep because of their financial woes.
But an IVA could ease the pressure on cash-concerned Britons.
IVAs seek to drive down personal unsecured debts of more than £15,000 by freezing interest rates and setting up a repayment schedule based on what a debtor can afford.
This may be ideal for those who have seen their budget slashed in the ongoing period of economic downturn.
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 questions to benefit Brits losing grip on bills?
