Instances of IVAs will increase, says expert

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Instances of IVAs will increase, says expert

Fri 17th Nov 2006

More people will turn to Individual Voluntary Arrangements (IVAs) in the next few years in a bid to manage their debts, according to the director of Thomas Charles and Co, providers of a confidential debt counselling service.

Debt Free Direct had previously reported that between the months of May and October, it had issued more than twice the number of IVAs than in the corresponding period last year.

As a result, James Falla has spoken of his belief that a failure on behalf of individuals to sort out their debt situation will only increase the number of IVAs sought in the short-term and beyond.

Mr Falla stated: "My view is that the amount of personal debt that people are getting into is continuing to grow and I don't yet feel that all the people who have potentially got themselves into trouble have come to light.

"More and more people are going to be turning around and saying to themselves, 'I am in financial difficulty, I can no longer repay this money'. What this means is that increasing numbers of people will be looking for a solution."

A Thomas Charles survey discovered that one in five people in the UK currently has an unsecured debt in excess of £10,000.

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