Money News
1st August 2008
Surge in IVA's recorded as debt problems rise
More and more homeowners opted to take out an individual voluntary arrangement (IVA's) in the second quarter, adding fuel to predictions that the nation is facing a debt epidemic.
TDX Group detected a 17 per cent increase in the number of homeowners applying to go insolvent over the period.
The surge in the number of mortgage holders struggling with repayments is being attributed to the impact of higher food and energy bills as well as higher mortgage repayments.
Mark Onyett, chief executive at TDX said: "The increase in mortgage interest payments is hitting homeowners hard.
"More and more people are asking for help with their debts, but it will take six months for those people to arrange plans."
Debt management companies have also been predicting that demand for alternative debt solutions such as consolidation loans will increase this year, in line with the mounting pressure being faced by consumers.
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