Rise in IVAs recorded as consumers struggle with debt
Rise in IVAs recorded as consumers struggle with debt
Thursday 26th June 2008
Data from TDX shows that between January and May this year, the number of households opting for IVAs has grown by 32 per cent year on year with around £2.2 billion paid through the debt management solutions every year.
IVAs are debt management solutions which allow people to avoid bankruptcy by entering into an arrangement with their creditors whereby they pay a reduced sum each month.
Mark Onyett, chief executive of TDX predicted that with constraints on household finances set to increase in line with rising food and energy prices more and more people will turn to debt management companies in months to come.
He added: "We anticipate that the number of new IVAs opened in England and Wales will continue to increase in 2008.
"The rising cost of living is not the only reason for this growth. More expensive mortgages help explain why more homeowners are taking out IVAs."
Debt1, official website of Byrom & Keeley - Experts in Debt Management.
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