span individuals make arrangements to
class="cap">H uge freeze loan-interest and lower
numbers of British repayment amounts in exchange for
borrowers are overextended and continued payment until the loan
their debt problems are is cleared.
potentially very serious, credit
Individuals approaching
cards nationally are at their companies are having little
highest debt levels ever success; in fact, there were 15%
recorded, many people are less IVAs in the last quarter of
struggling to pay their 2007. The DRF claim that the
mortgages, and even the basic reason for this is there are
monthly bills. tighter conditions being imposed
People generally do not want to by credit card companies and
face bankruptcy and try to find banks who advise their clients
alternative methods to pay off that IVA is not available for
their debts without losing their them.
home. According to the Debt
A possible better option is to
Resolution Forum (DRF), who is a seek professional advice from a
pressure group dealing with broker who has connections with
insolvency problems. Banks and these large companies and can
credit card companies and not arrange for debt consolidation or
being very co-operative with possible remortgage.
people who wish to resolve their
Banks and other lenders are
debts with these large trying to push for higher
corporations.
payments from these borrowers who
The DRF claims that many banks are in distress. There is a whole
and other lenders are not industry built around
co-operating fully with what are individual’s insolvency. They
known as Individual Voluntary will certainly have a lot of work
Arrangements (IVA’s). By which on their plate this year, the DRF
believes that the debt crisis personal debt is seen as a
looming this year could explode. percentage of income nationally,
This could mean more trouble for has gone up from 105% back in
the big companies who own these 1997 to 164% during 2006. With
debts. new figures not yet available, it
The terms of an IVA mean that is obvious that we will again see
75 percent of the creditors must record debts and they will
approve the implementation of new continue to rise.
debt arrangements. What this
Amazingly that is the highest
means in practice is if a bank percentage recorded anywhere in
refuse the agreement there will the world. Therefore, it is no
probably be no chance of a deal wonder that so many people have
being reached.
debt problems.
The banks deny that they are
More than 160,000 people have
making it more difficult for contacted the charity Consumer
people to make these Credit Counseling Service (CCCS)
arrangements, and say that they in the last quarter of 2007,
want more acceptable returns from that's over 18% up on the same
creditors. They also claim that period the previous year.
the average fee charged by these
There were just under a
companies is Ł7,500, which they quarter of a million consumer
believe is excessive.
debt, CCJ’s (County Court
In comparison, a debt Judgments) in the last quarter of
consolidation loan or other last year, the highest ever
remortgaging options cost recorded figure. Repossessions
considerably less and do not have homes in the UK has reached
involve the banks are other its highest level in nearly 10
companies approval.
years, up 30% in the last 12
The UK is borrowing problems months.
are continuing to spiral,
Many fixed-rate deals, taken
out over the last few years, will align="center">
expire soon, adding to the
monthly mortgage fee and debt
headaches for hundreds of type="text/javascript">
type="text/javascript"
About the Author:
Joe Kenny writes for Glitec.org, visit them today for debt help and for US residents Rebuild to consolidate debts and debt relief
