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Personal debt problems `keep rising`

07/11/2007

Despite a decrease in the amount of individual voluntary arrangements (Ivas) being taken out, the number of consumers with personal debt problems is still rising, a major financial body has claimed.

Figures from the Insolvency Service released earlier this week showed that the number of people applying for bankruptcy fell five per cent during the third quarter of 2007, while applications for Ivas fell 14.3 per cent year-on-year.

However, the average personal debt is continuing to rise and the recent credit crunch has pushed more consumers into debt, according to R3, the Association of Business Recovery Professionals.

Nick O`Reilly, vice-president of R3, claims consumers with debt problems are being advised to avoid Ivas when they could be the correct solution for their problem.

Mr O`Reilly added: "In many cases when an individual is hopelessly insolvent, an Iva is the most suitable option for them. It means that they will not have to go bankrupt and risk losing their home and they won`t be forced into an unreliable debt management plan, which could last indefinitely and still result in bankruptcy."

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