Friday 31st of July 2009
New figures from Credit Action revealed that an average of 3,300 people are made redundant every day.
Furthermore, one in 33 people are expected to become unemployed this year, which could make it harder for them to meet their financial commitments.
When a drop in household income pushes people further into the red, monthly payments may become unmanageable.
However, an individual voluntary arrangement (IVA) could help households which are in serious debt. Debt from various creditors is reduced into a single monthly amount which could be easier to pay off, while interest may be frozen, relieving some of the burden.
IVAs are also an alternative to bankruptcy, which can lead to a variety of monetary difficulties further down the line.
The Credit Action figures revealed that one person every 4.35 minutes is declared bankrupt or insolvent.
However, with bankruptcies sometimes recorded in local newspapers, IVAs could be a more discreet route for individuals who want to clear significant amounts of debt.
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
- An IVA could answer your credit card confusion
