“Phenomenal” growth in IVAs

Although the number of people suffering from debts is increasing across the UK, one debt solution charity suggests that certain problems peculiar to Scotland mean that the numbers of debtors north of the border are continuing to rise at a faster pace.

Invocas believes that lower numbers of homeowners in Scotland together with a buoyant economy in places such as Aberdeen mean that people are spending more and hence landing themselves with debt problems.

Mike Gerrard, head of Grant Thornton, adds that the problem is likely to get worse before it gets better.

He told the Scotsman: “While the figures may suggest belt-tightening exercises up and down the country, people are still spending.

“In fact, during 2006, Britons borrowed almost £14 billion in unsecured lending alone.”

Meanwhile, John Hall, chief executive of Invocas, added that the “phenomenal” growth in IVAs will be matched by the Scottish equivalent of Trust Deeds in order to tackle outstanding repayments.

The news comes as research from the Future Laboratory states that more people are having to lease goods rather than buy them due to their levels of debt.

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