SURVEY REVEALS DEBTS SOLUTIONS USERS RATE THEIR EXPERIENCE POSITIVELY
- IVA-info-UK.org.uk releases latest research into consumers’ experiences with debt solution providers -
(London, 14/08/06) IVA-info-UK.org.uk, the leading online portal for IVA information, has today released a survey investigating people’s experiences of tackling and resolving serious debt.
The online survey, conducted this week with a sample of 320 adults, was conducted in the wake of stats released last week revealing an overall increase in individual insolvencies of 10% over the previous quarter and 66% on the same quarter last year. Of those questioned in the IVA-info-UK.org.uk survey, 80% reported debts of over £10K while 37% reported debts of over £30K. Of these, 88% have sought information and advice about their debts.
Despite the high profile coverage of debt issues in recent months, however, the majority of respondents indicated an initial reluctance to discuss the problem with others. 54% reported that their first action was to do their own research on the Internet while only 18% consulted their bank, and just 13% confided in family and friends.
The cross section of respondents, consumers from a number of debt solutions providers, including the Citizens Advice Bureau, CCCS, and Thomas Charles, were also questioned about the service they received.
The survey also investigated the factors influencing people’s choice of provider and asked them to rate their experience. When selecting a debt solutions provider, the number one factor influencing consumer’s choice is ‘debt knowledge and expertise’ (47%). The appropriateness of the solution offered (38%) and the speed of response (35%) is also rated as important. Surprisingly fees were rated as far less important, with only 18% of respondents stating that it was a factor in their decision.
For those who used a debt solutions provider, the verdict was positive with the majority (68%) reporting that the appropriateness of the solution they were offered was ‘Quite Good’ or ‘Excellent’. The majority also rated the following elements as ‘Excellent’: Debt Knowledge and Expertise, Fee structure, Speed of response, and Telephone manner. Company websites also faired well with 57% rating provider’s online presence only as ‘Quite good’ or ‘Excellent’.
Echoing recent DTI stats, IVAs topped the chart as the most chosen debt solution (40%). Bankruptcy was opted for in only 9% of cases with more people opting for informal ‘debt management plans’ (28%).
Around 7% of respondents said they had taken no action since consulting a debt solutions provider. Women were less likely to take action after speaking to an adviser, with 9% of women taking no further action, compared with just 5% of men.
The level of debt was shown to be a factor in the solution selected, with Debt Management plans being favoured by those with debts of less than 15k, while the majority of those in more than 15k of debt chose to do an IVA. Broken down by gender, however, IVAs were only the preferred option for men, with 45% percent opting for an IVA, compared with just 28% of women, who narrowly favoured an informal debt management plan (29%).
While 57% of respondents reported that their debt problem was not solved, an impressive 76% of respondents reported that they were happy, overall, with the debt solutions provider they used and 77% said that they would recommend the debt solutions provider they used to a friend or family member. These stats perhaps reflect the long term solution offered by IVAs, whereby people pay what they can afford over 60 months, before having the remaining debt written off.
An IVA-info-UK.org.uk spokesperson commented:
“The picture revealed by IVA-info-UK.org.uk’s research is a positive one. Encouragingly, the numbers indicate that people are, in the main, being directed to the best solution for their individual needs but we cannot underestimate the importance of quality advice from properly trained practitioners.”
About IVA-info-UK.org.uk
IVA-info-UK.org.uk is Britain’s leading online portal for IVA information.
IVA-info-UK.org.uk was formed in 2005 to help improve understanding of debt and debt solutions in Britain by providing impartial advice and a live forum alongside a regular roundup of the latest news, statistics, and research from the world of debt solutions.
For further information, please contact:
Emily Cagle (NET121)
Tel: +44 (0) 20 8832 1200x
Mob: +44 (0) 78 9485 5722
IVA Info UK: Media Room
IVA Info UK: News Debt Feeds
IVA Info UK: Press releases
IVA Info UK: Interviews
IVA Info UK: Media Requests
IVA Info UK: Subscribe IVA Info UK
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Charles & Co - the Debt Help Specialists |
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