Will the IVA be a popular debt solution in 2008?
Figures show that more and more people are seeking an IVA, as an appropriate means of tackling debt.
Manchester Business School has calculated that during 2006, 13,000 couples opted for an IVA in the UK which shows an increase by 165% when compared to the figures in 2004. In 2005, the average amount of debt resolved with an IVA was said to be £21,000 but two years on, this figure has risen to £42,000.
Figures are also expected to have increased during the last three months as interest rates push even more people towards an IVA, as a means of helping to relieve their mounting debt problems.
It is predicted that the number of people applying for an IVA, could reach a whopping 50,000 by 2010.
As housing prices and interest rates continue to rise, an IVA is an ideal way to keep creditors happy, as people with struggle with inflation. Statistics also reveal that newlywed couples are finding it difficult to cope with debt, after the expense of the wedding starts to kick in. Consumers under the age of 30 are also susceptible to huge money worries as they acquire debt from starting a family, buying their first home and financing social activities..
During the first quarter of 2007, over 13,000 people opted for an IVA, as it is a softer version of bankruptcy and allows debtors to keep their home. Will this trend continue in 2008?
