More than 30% of the debt in Europe is in the UK
January 4, 2007 (Press Release) --
London (online-unsecured-loans) January 3, 2007: Increasing numbers of people are using IVAs to eradicate part of their debts and, in so doing, evade the disgrace of bankruptcy. With IVAs, a fixed amount is repaid every month. The creditors, on their part, freeze interest payments on the debt. However, debt-advice firms selling IVAs are frustrating traditional banks, who see this as giving debtors an easy way out.
The figures have been staggering. In 1998, the number of people using IVAs was under 5,000; in 2005, it was 20,000. According to KPMG figures, 45,000 people used IVAs to pay off debts, and 65,000 people declared bankruptcy in 2006. Personal insolvencies went up to 110,000, a more than 60% hike on the previous year.
Head of personal insolvency at KPMG, Steve Treharne, says: "the sorts of debts we have seen being dealt with by IVAs in 2006 are personal loans, credit card balances and other forms of 'buy now, pay later' unsecured loans.
"Most of the money is borrowed to meet 'current' expenditure (including lifestyle items such as holidays) rather than to acquire assets or to fund a business. Given so many people with enormous debts, and the high average level, too many people have debts that they have no realistic hope of repaying."
For additional information on the news that is the subject of this release (or for a sample, copy or demo), contact Webmaster or visit www.online-unsecured-loans.co.uk
The figures have been staggering. In 1998, the number of people using IVAs was under 5,000; in 2005, it was 20,000. According to KPMG figures, 45,000 people used IVAs to pay off debts, and 65,000 people declared bankruptcy in 2006. Personal insolvencies went up to 110,000, a more than 60% hike on the previous year.
Head of personal insolvency at KPMG, Steve Treharne, says: "the sorts of debts we have seen being dealt with by IVAs in 2006 are personal loans, credit card balances and other forms of 'buy now, pay later' unsecured loans.
"Most of the money is borrowed to meet 'current' expenditure (including lifestyle items such as holidays) rather than to acquire assets or to fund a business. Given so many people with enormous debts, and the high average level, too many people have debts that they have no realistic hope of repaying."
For additional information on the news that is the subject of this release (or for a sample, copy or demo), contact Webmaster or visit www.online-unsecured-loans.co.uk
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