Reduction in number of IVAs reflected in latest figures
The personal consumer debt mountain in the UK has been the topic of major concern for a number of years, with debt levels rising towards the one and a half trillion pound mark in the UK.
Also, towards the end of 2006 reports indicated that for the first time the number of people going insolvent had broken the one hundred thousand barrier, with many people resorting to dealing with their unmanageable debts through declaring bankruptcy or opting for a program known as an IVA (Individual Voluntary Agreement).
With reports of rises in the number of people that were seeking IVAs in order to rid themselves of debt, glossy advertisements from IVA specialists promising to get consumers out of the mountain of debt that they were in, and huge levels of bad debt accruing over the course of the year, banks have already promised to take a firmer stance on IVA applications, with many applications being rejected.
In order to succeed an IVA needs to be agreed by a majority vote from the lenders, and with many lenders and banks coming down hard on IVA applications many consumers found that after the long process of filing for an IVA they were ending up back at square one.
Latest figures that have been released from PricewaterhouseCoopers have shown that over the past few months the number of IVAs being entered into has actually been falling, and this could be partly because of the lenders' increasing reluctance to accept this type of arrangement.
However, officials from PricewaterhouseCooper state that this is also due to personal debt levels stabilising.
One insolvency specialist from the agency stated: "Our indications are that month on month IVA numbers have been falling gradually."
He added that figures show that IVAs now seem to be 'tailing off'.
Tom Smith
5th March 2007
More Information:
- General Loan Advice For Managing Debt
Debt is a really easy thing to get stuck in. Even if you are not extravagant monthly costs can spiral out of control, especially if you take your eye off the ball. So what can you do to avoid getting too far into debt and if you are there already how can you get out of it?
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It is easy for debt to get out of control. Student loans, losing your job, becoming ill or any number of other unforeseen events can easily cause debts to mount up.
Did you know that switching lenders can save you money? Just because you agreed to a loan in the past, doesn’t mean that you have to stick with it forever. Most people stick with the same lender for years and years.
