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

UK reaping what it has sown in terms of personal debt, expert claims

04/02/2009

The UK is reaping what it has sown in terms of the high levels of personal debt possessed by many consumers.

This is the opinion of Nick O`Reilly, president of insolvency trade body R3, who said that debt levels will continue to rise unless people change their behaviour.

According to the expert, the young adults of today have been led to believe that they can have anything they desire on credit without experiencing any ill consequences.

He stated: "Every day, R3 members, who are insolvency practitioners up and down the UK, see personal debtors who have got into this situation through a lack of skills and confidence in financial matters."

Mr O`Reilly made his comments in the wake of research published by the University of Manchester, which suggested that standalone financial education qualifications can dramatically improve people`s knowledge, skills and confidence in financial matters.

The study, which tracked more than 3,000 students over a period of up to three years, suggested that this knowledge enhancement can lead to long-lasting behavioural change.

Recently, Tenon Recovery suggested that men are around 2.5 times more likely to file for bankruptcy than women, the Observer reported.

The firm cited anecdotal evidence that females are more efficient at tasks such as keeping financial records in order as a possible factor behind the figure.

Government warns about rising credit card debt 05/03/2010 - The latest figures from the Bank of England (BoE) have Debt - the 12-month view 04/03/2010 - In January, UK citizens - between them - borrowed £500 Amount of `bad debt` written off reaches 16-year high 03/03/2010 - The latest figures from the Bank of England (BoE) suggest Deeper into debt: middle-class poverty 02/03/2010 - The recession has also affected a lot of people with