Thursday 19th of November 2009
The steady increase in retail sales coupled with the ongoing period of economic downturn could be pushing consumers into dangerous levels of debt - a situation some people may wish to solve with the use of an individual voluntary arrangement (IVA).
According to the Office for National Statistics, the value of sales in Britain’s shops during October grew by three per cent compared with the same month in 2008.
Some of the largest rises were found in the food (3.9 per cent) and clothes (4.2 per cent) industries.
The surging value of retail sales comes despite continuing problems with the economy and employment rates.
Jonathan Loynes, chief european economist at Capital Economics, told Reuters: "With household debt still very high, unemployment set to rise a lot further and a fiscal squeeze looming, the outlook for consumers is hardly rosy."
Excessive shopping during such an uncertain period could drive some consumers into unsecured debt trouble if they use credit cards to pay for the weekly shop or other relatively small expenses.
One way to solve this may be to take out an IVA, which could freeze interest rates on unsecured borrowings and renegotiate repayment periods so that paying off debt is more manageable.
By Hayley Jones
- 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
- Could an IVA help make your little ones' futures more secure?
