The UK Insolvency Helpline help with £1.2billion of debt.
Larry Edwards | 25.05.2002 09:24
The UK Insolvency Helpline, the largest of free telephone advice lines dealing with debt has announced moving results.
THe UK Insolvency Helpline revealed today that their advisers around the UK are currently dealing with new cases of problem debt worth a staggering £1.2 billion a year.
The Helpline has reported consumer debt problems with loans, overdrafts and credit cards, store cards, mail order and HP repayments have increased by 39 per cent over the last four years, indicating that the credit boom has turned into problem debt for many Britons.
Preliminary findings of research with clients into why and how people slide into debt show that nearly a quarter of the people surveyed had struggled with serious debt problems for up to two years before seeking expert help. The research found that job loss and low income were the major factors people thought had triggered their debt crisis. Relationship breakdown and illness were also significant trigger factors. A change in circumstances was the most common reason cited for debt problems while fewer than one in three respondents reported over-spending or over-commitment as reasons for debt.
Senior advisor Vicram Patel said:
“The UK Insolvency Helpline is the biggest provider of free, independent, expert advice on debt in the UK, but we are still shocked to find our advisers are dealing with personal debt on such a huge scale. As our research also shows, the impact of serious personal debt on people’s lives can be devastating.
In most cases of debts above £15,000 many people are opting to enter into Individual Voluntary Arrangements (IVA. IVAs are a formal arrangement which is legally binding and was initially introduced by an Act of Parliament (The Insolvency Act 1986). Under this agreement, your creditors will receive a percentage of your debt as settlement of the amount owed.This solution, therefore offers them a settlement which would be far more beneficial to them than going bankrupt. It is legally binding, so creditors are guaranteed to receive the agreed amount.
The UK Insolvency Helpline operate a freephone advice line on 0800 074 6918 and can also be seen online at:
www.insolvencyhelpline.co.uk
“It is particularly worrying to discover the extent to which further borrowing is often seen by consumers as a potential solution to debt problems. This combined with high levels of stress and depression experienced by people in debt raises some hard questions for creditors about responsible lending and underlines the importance of their treating people in difficulties fairly and constructively.”
The Helpline has reported consumer debt problems with loans, overdrafts and credit cards, store cards, mail order and HP repayments have increased by 39 per cent over the last four years, indicating that the credit boom has turned into problem debt for many Britons.
Preliminary findings of research with clients into why and how people slide into debt show that nearly a quarter of the people surveyed had struggled with serious debt problems for up to two years before seeking expert help. The research found that job loss and low income were the major factors people thought had triggered their debt crisis. Relationship breakdown and illness were also significant trigger factors. A change in circumstances was the most common reason cited for debt problems while fewer than one in three respondents reported over-spending or over-commitment as reasons for debt.
Senior advisor Vicram Patel said:
“The UK Insolvency Helpline is the biggest provider of free, independent, expert advice on debt in the UK, but we are still shocked to find our advisers are dealing with personal debt on such a huge scale. As our research also shows, the impact of serious personal debt on people’s lives can be devastating.
In most cases of debts above £15,000 many people are opting to enter into Individual Voluntary Arrangements (IVA. IVAs are a formal arrangement which is legally binding and was initially introduced by an Act of Parliament (The Insolvency Act 1986). Under this agreement, your creditors will receive a percentage of your debt as settlement of the amount owed.This solution, therefore offers them a settlement which would be far more beneficial to them than going bankrupt. It is legally binding, so creditors are guaranteed to receive the agreed amount.
The UK Insolvency Helpline operate a freephone advice line on 0800 074 6918 and can also be seen online at:
www.insolvencyhelpline.co.uk
“It is particularly worrying to discover the extent to which further borrowing is often seen by consumers as a potential solution to debt problems. This combined with high levels of stress and depression experienced by people in debt raises some hard questions for creditors about responsible lending and underlines the importance of their treating people in difficulties fairly and constructively.”
Larry Edwards
Homepage:
http://www.insolvencyhelpline.co.uk