Debt Management Plans Answer For Those Struggling With Loans
We reported recently, that the latest figures published by the insolvency service have revealed a significant increase in the number of individuals entering into bankruptcy, or taking out an Individual Voluntary Arrangement (IVA) due to not being able to manage their personal loan and credit card debts.
It is believed that a large number of individuals who declare themselves bankrupt, or receive a Debt Relief Order (DRO), do so because they are unaware of the alternatives, such as IVA’s or debt management plans.
It is quite possible that many of these people who are currently declaring themselves bankrupt, would be able to manage their personal loan, home owner loan repayments and other debts if they sought suitable professional advice on the matter from an insolvency practitioner, or similar expert.
The insolvency service figures show that there were more than 18,000 bankruptcies declared in the UK in the first quarter of this year alone and some of these could possibly have been avoided with suitable loan and debt advice.
Even so, the debt charity the Consumer Credit Counselling Service (CCCS) has said that its online loan and debt counselling service has seen a huge increase in visits, with more than 86,000 people using the service in the first three months of the year, more than double the amount for the whole of last year.
Pat Boyden of PricewaterhouseCoopers LLP said “A massive 35,682 people entered into personal insolvency in the first three months of 2010, showing that the record number of personal insolvencies reached last year is showing no signs of slowing as the UK economy comes out of recession.”
“Consumers are having increasing difficulty in reaching compromises with creditors due to a lack of available funds.”
