Home > News > IVAs

Consultation on debt management launched Govt aid for those struggling with mortgages `too late for some` Pensions `no problem` for IVAs UK reaping what it has sown in terms of personal debt, expert claims Struggling consumers `likely to default on TV subscriptions` Consumers `struggling to cope with mounting debt` Bankruptcy increases by 7% `More Brits applying for personal loans` 70% of Brits `without unsecured loans` Pre-paid cards `more popular as debt rises` IVAs `a real alternative` to bankruptcy Brits `trying to escape credit crunch` by moving abroad West Sussex consumers suffering debt IVA agreements increase Industry body welcomes IVA mailing probe OFT to target bogus IVA companies IVAs can be "helpful" for large debts IVAs - consumers warned about bogus deals Insolvency rates rising IVAs can be "better option" than bankruptcy

Personal debt problems `keep rising`

07/11/2007

Despite a decrease in the amount of individual voluntary arrangements (Ivas) being taken out, the number of consumers with personal debt problems is still rising, a major financial body has claimed.

Figures from the Insolvency Service released earlier this week showed that the number of people applying for bankruptcy fell five per cent during the third quarter of 2007, while applications for Ivas fell 14.3 per cent year-on-year.

However, the average personal debt is continuing to rise and the recent credit crunch has pushed more consumers into debt, according to R3, the Association of Business Recovery Professionals.

Nick O`Reilly, vice-president of R3, claims consumers with debt problems are being advised to avoid Ivas when they could be the correct solution for their problem.

Mr O`Reilly added: "In many cases when an individual is hopelessly insolvent, an Iva is the most suitable option for them. It means that they will not have to go bankrupt and risk losing their home and they won`t be forced into an unreliable debt management plan, which could last indefinitely and still result in bankruptcy."

More than 4 million fear they`ll be made redundant 16/12/2010 - According to R3`s quarterly personal debt tracker, more than 4 Consumers took on more mortgage debt in July 26/08/2010 - Consumers took on £2bn more mortgage debt than they repaid Debts called in by parents 26/08/2010 - According to research, `the bank of Mum and Dad` is Teenagers `scared of debt` 19/08/2010 - Nearly two thirds of teenagers are `scared` of debt, according