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Warning over IVAs

Commenting on today’s insolvency statistics Joanna Elson OBE, Chief Executive of the Money Advice Trust, said:
 
“The annualised trend for falling personal insolvencies needs to be understood in the context of a changing debt landscape. Lending to individuals fell between 2009 and 2013 and so the scope for insolvencies has reduced. At the same time we’ve seen a marked increase in people in arrears on household bills.
 
“The provision of debt help has also undergone change in recent years and this has impacted on the make-up of personal insolvencies, characterised by a marked increase in Individual Voluntary Arrangements (IVAs). We have concerns that the increase in IVAs is not reflective of the types of debt problems people find themselves in, but rather of the way in which many debt management companies can most effectively generate income.
 
“It is vital that anyone considering insolvency seeks free advice which is impartial from any specific solutions that might be suggested. Advice is available over the phone and online from National Debtline and face-to-face at your local Citizens Advice Bureau. An adviser can talk you through your options and help you find a sustainable route to financial health.” 
 
 
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