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Consumers accustomed to taking on debt

April 5, 2007 by admin  
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Consumers have grown increasingly used to taking on debt in recent years, according to the head of a website which offers advice about individual voluntary arrangements (IVAs).

As the agreements become increasingly popular with borrowers who are struggling to make debt repayments, Phillip Beck of Freeivaadvice.co.uk said: “I think it is a problem that has built up over many years and that is that people have got used to taking on debt.

“The amount of in the UK has steadily increased over the years and it is finally getting to the point where people have so much debt which they simply cannot repay.”

However Mr Beck, commenting ahead of new research which will examine the increasing number of county court judgements granted in the UK, also acknowledged that “lax lending policies” by some loan providers and lenders was also part of the problem.

According to the Department of Trade and Industry (DTI) some 12,228 people entered into IVAs with lenders in the third quarter of 2006, an increase of 117.9 per cent on the same period in the previous year.

Tags: court, uk, loan, previous year, individual voluntary arrangements, Department of Trade and Industry, Freeivaadvice, consumer debt

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