- Thursday, 20 August 2009Individual voluntary agreements (IVAs) are an effective way of paying back creditors - as long as you can afford to enter into one.
For those people who are unable to do so, debt relief orders (DROs) can be a useful substitute as they are widely regarded to be inexpensive to adopt.
The qualifying terms for entering into a DRO include the inability to repay debts, unsecured loans of up to £15,000 and assets totalling less than £300.
North-east regional chairman of insolvency trade body R3 Jim James said that while DROs can be of use to the individual, they are also clouding the 'bigger picture' with regards to cumulative UK debt issues.
He said: "With more than 20,000 inquiries about DROs, we know the true figure of Britain's personal debt problem is not showing up in today's official figures," according to the Northern Echo.
The Office for National Statistics reported earlier this month that unemployment has risen to 2.4 million - a figure set to have an impact on debt needs in Britain.
Recent IVA News23% of first-time buyers save for five years to raise a depositWed, 04 May 2011
Brits dealing with Finance Management should shop around for car insurance Wed, 04 May 2011
Parents, including those with Finance Management, advised to start saving for children's weddingsTue, 03 May 2011
Newlyweds may be in need of Finance Management plans after overspending on weddingTue, 03 May 2011
Renting rather than buying may be an option for Brits with Finance Management Thu, 28 Apr 2011
Consumers coping with Finance Management may want to shop around for cheap energy tariffsWed, 27 Apr 2011
Increasing number of Brits turning to loans for home improvementsWed, 27 Apr 2011
Brits, including those with Finance Management plans, to spend £267 on Royal Wedding Tue, 26 Apr 2011
Equity release can be used to 'become debt-free'Tue, 26 Apr 2011
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