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2010 was a 'record' year for paying off debts

by Administrator 7. March 2011 11:15
The number of people clearing their financial arrears, possibly through a debt management plan, increased in 2010.

According to unbiased.com, Brits repaid 14p of debt in every pound they saved in the final quarter of 2010.

At the start of last year, consumers were paying 19p out of every pound on debt repayments, making 2010 a record year for Brits clearing their outstanding balances.

Karen Barrett, chief executive of the price comparison site, said: "Brits' borrowing habits returned to better health throughout last year and it is encouraging to see the trend for debt repayment increasing in 2010 compared to 2009.

"However, debt repayment levels have tailed off towards the end of last year, therefore it will be interesting to see how this will develop during 2011."

It was also recently revealed that Individual Voluntary Arrangements (IVAs) increased in popularity in 2010.

The Insolvency Service revealed that 135,089 Britons faced bankruptcy or obtained an IVA last year, reported This is Money.
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