- Friday, 5 February 2010Burgeoning debt is causing many Brits to take out
IVAs and personal insolvencies, according to new statistics.
The Consumer Credit Counselling Service (CCCS) reveals a steep rise in personal insolvencies during the past year, with the charity reporting an annual increase of 93 per cent in overall insolvency recommendations.
In 2009 CCCS recommended insolvency to 39,663 of its clients, and 20,659 people approaching it for debt-related help were pointed towards bankruptcy, 11,877 towards Individual Voluntary Agreements (
IVA) and 7,127 Debt Relief Orders (DRO).
There was a reported 148 per cent increase for
IVAs compared to 2008.
Commenting on the figures, CCCS director of external affairs Delroy Corinaldi said: "Although there has recently been positive signs in the economy, our figures highlight the high numbers of people with unmanageable debt, for which insolvency is the most appropriate solution."
The National Audit Office (NAO) has this week 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.
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