Thursday 2nd of July 2009
Consumers have been told to "wake up" to their debt to avoid facing difficulties ten years down the line, although an individual voluntary arrangement (IVA) could tackle money problems now.
Director of Credit Action Chris Tapp said he hoped the group’s latest debt report made people realise the importance of getting on top of their finances, which could see households taking the first step by seeking IVA advice.
The debt report revealed that the average household debt - including mortgages - stands at £58,360.
One person every 4.35 minutes will be declared insolvent or bankrupt this year, the findings noted, although getting IVA help could avoid the need to go down the route of bankruptcy.
"As consumers we want instant gratification and buying things now without saving, but we need to learn to be patient," Mr Tapp advised.
Desire for shopping led secretary Laurie Smith, 22, to seek IVA help after she racked up debts of £22,000 trying to live a celebrity lifestyle, the Sun recently reported.
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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
- IVA answers to help tackle problems caused by high cost of credit?
