David Mond, CEO of ClearDebt, called on credit and loan providers to “stop panicking” and start treating Individual Voluntary Arrangements (IVAs) as serious debt solutions.
“Banks and credit card companies need to stop panicking and start taking the IVA seriously as their best debt resolution process,” stated Mr Mond.
He claims that by the end of this year, more than one in every 250 adults of a working age will have been given an IVA.
With most Britons having around 150 people in their social network, this means that the average person will soon know two people with an IVA.
As an IVA can offer a debt solution that is more acceptable to both consumers and banks due to the terms of repayment, Mr Mond said that big creditors are going to have to participate more with the arrangements as part of their financial strategy.