With over 130000 (134142) people becoming insolvent last year – be it through bankruptcy or taking on an Individual Voluntary Arrangement (IVA) – Britons are becoming more aware of the need to get their house in order. For the seventh quarter in a row, the last 3 months of 2009 saw this in a very literal sense, as £4bn of mortgage debt was paid off. However, whilst people are diverting money into secured debts like housing, it means there is less money to go on unsecured ones, such as credit card bills, leading many to seek debt advice to cope with their other outgoings. For people with unsecured debts of over £15000, an IVA could be the form of debt management for them. These work by transforming a person’s debt into a manageable amount with just one monthly payment. Should creditors agree, debts can be paid off within five years and any left after this time are waived.
£4bn mortgage debt paid off
April 7, 2010 By
