A think tank has proposed a sharp tax rise for the next decade, which would see millions more Britons plunged into debt misery. Currently one out of every 320 adults in the UK is insolvent and receiving some form of debt advice and this can only go up if higher taxes are introduced. One option for people who find themselves stuck in a debt spiral is an IVA. If a person has more than three creditors and over £15000 of debt, they can apply for one. IVAs allow people to pay off what they owe over the course of five years and won’t put the family home at risk to fund repayments. This comes after the National Institute of Economic and Social Research proposed a 6 per cent hike in income tax to lower the national budget deficit by 2020.
Steep tax rise will cause more debt
May 4, 2010 By
