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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

IVAs can get debtors "back on track"

19/09/2007

Taking out an individual voluntary arrangement (IVA) gives the consumer a chance to "start afresh", a financial expert has claimed.

As levels of personal debt increase to record figures, more and more consumers are looking at taking out an IVA or insolvency plan to sort out their debt problems.

Wayne Harrison, a spokesman for the Insolvency Practitioners Association, said that while in the past bankruptcy was seen as a "last resort", the increase in popularity of the IVA means that there are ways in which financial institutions can "facilitate people" out of debt problems.

Mr Harrison added: "An IVA is essentially an alternative to bankruptcy. Hopefully it`s a formal statutory resolution that evokes creditors to get back a reasonable return on money they have lent to debtors and also [gives] debtors the equal opportunity to get their life back on track and start afresh."

According to statistics from the Insolvency Service, there were 26,956 individual insolvencies in England and Wales in the second quarter of 2007.

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