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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

Over 2m `constantly overdrawn`

04/12/2007

More than 2.1 million consumers in the UK have bank accounts which are permanently overdrawn, with a growing number turning to Individual Voluntary Arrangements (IVAs) to solve their debt problems, research shows.

The number of people turning to the Insolvency Service for help with their debt problems grew by 13 per cent in the last year, figures from Credit Action suggest.

Take-up of IVAs dropped slightly during the last three months but this has been put down to a backlog of applications which are expected to be processed in the new year.

The research also found that the debt collection industry is growing, with £22.7 billion expected to be collected in 2007 and increasing to a predicted £24.3 billion next year.

Personal debt as a proportion of income has risen from 105 per cent in 1997 to 164 per cent in 2006, the highest ever recorded and the highest in the developed world.

Credit Action is a financial education charity.

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