UK debt ‘expected to rise’
Article Category: IVA (Individual Voluntary Arrangement) Help and Advice
Personal debt in the UK is likely to continue to rise until 2011, it has been claimed.
A new Debt Management Market Report from Research and Markets predicts a continued increase in the level of debt in the country in the next four years.
Mortgages are likely to play a key role in this, accounting for the single largest type of lending in 2006, the report states.
With total consumer debt up by 48 per cent from 2001 to 2006, “the amount of debt in the UK is currently a matter of considerable debate and concern”.
Among debt solutions, alternatives to bankruptcy are increasingly popular as “the IVA is one of the growth sectors of the debt management industry”.
This could continue to be a key factor in light of recent interest rate rises, as it is warned higher rates could “result in an increase in the number of borrowers defaulting on their loans”.
Chris Tapp, deputy director of financial education charity Credit Action, recently advised that IVAs are less stigmatised than bankruptcy as they suggest an effort is being made by an individual to clear their own debt.
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