UK DEBT SPIRAL CONTINUES
UK DEBT SPIRAL CONTINUES AS NEW SURVEY SHOW 35% OWE MORE THAN £30,000 IN UNSECURED DEBTS.
Results from the latest survey from IVA-info-uk.org.uk, the leading online portal for IVA information, show concerning figures. The survey shows that 35% of participants have more than £30, 000 in unsecured debts and 18% think it will take 20 years to repay their debt.
The survey also produced the flowing figures:
- 10% owe more than £40, 000 in personal loans
- 73% owe more than £1000 on credit/store cards
- 86% are worried they will have problems repaying their debt
A spokesperson for IVA-info-uk.org.uk, the leading online portal for IVA information, comments:
“In this country today it is relatively easy and socially acceptable to take credit. Because of this people tend to live to their means and often beyond it. They get into a ‘have now’ and ‘pay later’ attitude, and are certainly not saving for that rainy day. One can argue that this is not a problem if the debt repayments are within their budget. However, because people have pushed themselves to the limit financially, it only takes a small reduction in personal income to tip them over the edge.”
The IVA-info survey showed that 60% of people are in debt due to overspending
- 6% own 9 or more credit cards
- 28% own more than 5 credit cards
And overall, females own more credit/store cards than males.
- Over 60% of people with more than 5 store/credit cards are female.
Still 12% say they are VERY likely to borrow more money in the next 12months and 78% think that financial institutions lend in an irresponsible manner
The spokesperson continues:
“The worst of it is that someone with a debt problem will often try to carry the burden of the debt alone. If they admit they have a debt problem, they think their family and friends will look down on them and treat them as a failure. As such, they keep things to themselves and allow pressure and stress to build up"
The high amount of debt in the UK is starting to affect relationships and the health of those in debt. The survey showed:
- 71% agree that their debt has adversely affected their relationship;
- 50% think debt ill affects their work
- 75% have experienced depression and loss of sleep due to their debt o 92% have experienced some sort of negative physical or psychological impact from being in debt
- 15% have not told anyone that they are in debt
IVAs have proven to be an increasingly popular choice of debt solution and since 1998 IVAs have helped more than 50 000 people out of debt. Last year alone IVAs saw a 117.1% increase compared to bankruptcies at 36.7%.
The IVA spokesperson comments
“We have seen a drastic increase in people who have debts of £15,000 or more choosing to undertake an Individual Voluntary Arrangement. The IVA is a legally binding method of settling debt, which cannot be repaid in full. Generally the IVA involves making 60 affordable monthly payments. Interest and charges are frozen by law. As such the IVA gives a clear end date to the debt. It looks as though in the next couple of years IVAs will overtake bankruptcies. More than 200,000 people are currently on the brink of insolvency. An IVA offers light at the end of the tunnel for those faced with unmanageable debt.”
IVA-info-UK is an IVA information website which provides facts and details on IVAs to anyone with debt concerns. For more information on IVAs as a debt solution please visit
www.IVA-info-uk.org.uk or call 0800 197 4838.
About IVA-info-UK.org.uk:
Iva-info-UK.org is an online based IVA advice portal.
IVA-info-UK was created as a medium for people to find out more about financial issues such as debt and IVAs. Its live forum offers experts’ advice on any questions or issues about IVAs. Visitors to the website include individuals looking for information on debt.
IVA-info is intended as a door opener into the world of IVAs and financial information, providing media and press releases, advice, the latest debt statistics, objective research, and a forum open to the public. The site is at the top of the search engines.
For further data, analyses or graphics (charts etc) please use contact details below.
For further information, please contact:
www.IVA-info-uk.org.uk
For help and advice on debt solutions please call 0800 197 4838
Notes to editor
About the research The survey was carried out amongst a randomly selected group of individuals who have sought help or advice for debt. The survey was conducted over a 2 month period at the beginning of 2006.
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| Thomas
Charles & Co - the Debt Help Specialists |
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