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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 IVAs are `helpful but should not be taken lightly` IVAs `good to get out of tricky situations` People should "think very carefully" before entering an IVA IVA `saved businessman`s house` Govt unveils new IVA code

Bank charges `could lead to debt problems`

02/07/2007

Unclear rules and penalties relating to bank charges could be the cause of debt problems among the UK`s most vulnerable consumers, according to the National Consumer Council (NCC).

Ed Mayo, chief executive at the NCC, said that finding one`s way through the "current account jungle" could provide a "challenge" to some Britons, which could in turn lead to problems with debt and possibly even the need to take out an individual voluntary arrangement (IVA).

"Those on low incomes or with limited banking experience are most likely to be adversely affected [by the charges]," he said.

"For them, a default charge of £39 is enough to push them into debt. It`s time banks stopped pulling the wool over people`s eyes and started behaving more responsibly."

The council`s comments follow a consultation on personal current accounts, which has been launched by the Office of Fair Trading.

In related news, the Thrifty Scot recently listed the top ten areas for IVAs, many of which were located along the M4.

Many debts unaffected by base rate cut 09/01/2009 - Yesterday, many borrowers welcomed the Bank of England’s base rate 1.5% base rate – an historic low 08/01/2009 - Today’s base rate cut by the Bank of England’s Monetary Gas price cuts expected 07/01/2009 - Energy company Scottish Power has announced the launch of a Personal debt about £1.5 trillion 07/01/2009 - The UK’s personal debt stands at around £1.5 trillion, according