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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

Lenders `should allow debtors to take out IVAs`

14/08/2007

Banks and other lenders should be more understanding regarding their customers` proposed debt solutions, the Debt Resolution Forum (DRF) has concluded.

Chris Holmes, DRF chairman, said that some creditors have been blocking consumers from obtaining individual voluntary arrangements (IVAs).

IVAs, which allow those with high levels of debt to reduce their repayments through an agreement with lenders, fell by 15 per cent between April and June, the DRF said.

Mr Holmes warned that overly strict attitudes towards IVAs could lead to an increase in bankruptcies and a worsening of the debt crisis.

"Unless an effective new deal is reached, an explosion in bankruptcies is likely," he remarked.

He added that the increasing cost of living and a string of interest rate rises have not aided British debtors in paying off what they owe.

A total of 10,698 individuals chose to take out an IVA as a debt management solution during the second quarter of 2007, according to the Insolvency Service.

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