Wednesday 12th of January 2011
An increasing number of people may be asking individual voluntary arrangement (IVA) questions as it has been claimed personal insolvencies are on the increase.
Justin Modray of Candid Money noted the number of adults in the UK taking out IVAs leapt by more than 14 per cent last year.
And the industry expert observed personal insolvencies are likely to escalate with greater unemployment a possible outcome of the government's spending cuts.
He warned figures that show bankruptcies have fallen may not paint the full picture and advised that IVAs should not be taken lightly - which may be why some individuals will want to seek IVA answers before planning their next course of action.
His comments come after the latest debt statistics from Credit Action revealed the average owed by every UK adult - including mortgages - is £29,875.
The amount equates to 126 per cent of average earnings, while Britain's interest repayments on personal debt stood at £65.1 billion last year.
By Kimberley Parsons
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- 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
- Demand for IVA answers to rise in line with personal insolvencies?
