IVA help may be needed as UK consumer debt reaches record levels
- Thursday, 4 February 2010UK consumers overwhelmed by debt may benefit from
IVA help, following new figures indicating people are struggling to keep on top of their finances.
The National Audit Office (NAO) has revealed significant levels of "over-indebtedness" among UK consumers, with people owing a total of £1,459 billion in November 2009.
In the second quarter of 2009, 33,073 people were granted a bankruptcy, debt relief or
IVA - increasing by 27 per cent on the same period in 2008.
What's more, there are 11 million outstanding mortgages in the UK, and 396,000 were in arrears at the end of September, according to the report.
The situation has become so great that the demand for support and advice is overtaking capacity, according to the NAO.
Between July 2008 and July 2009 there was a 28 per cent increase in the number of people seeking advice.
Richard Bacon, MP for South Norfolk and a member of the Commons public accounts committee, told the Telegraph: "As of November 2009, UK consumer debt was an eye-watering £1.5 trillion, so it is unsurprising that around one in ten consumers struggle to keep up with their bills and credit payments."
