The number of people applying to enter an Individual Voluntary Arrangement (IVA) looks set to increase this year, according to one expert.
With credit deals more difficult to attain and the cost of borrowing likely to increase, Chris Tapp from the Credit Action charity is convinced that IVA applications are set to rise in 2008.
However, Mr Tapp maintains that it remains to be seen whether or not the number of indebted UK consumers who enter an IVA will show an increase this year.
“If we look at the cost of credit going up and being harder to come by as well, in 2008 I think people’s general financial situation is going to squeeze,” he said.
“I don’t think it would be at all surprising to see the number of applications go up.”
According to the latest data from Credit Action, the overall personal debt management burden in the UK increases by close to £1 million every five minutes.