IVA & Debt Consolidation Advice

Experts have warned that many people struggling with debts are being pressurised in to opting for individual voluntary agreements (IVAs) through extensive advertising campaigns.

Recent figures have indicated that the take-up of IVAs has risen by 150 per cent in the past year, and according to Pat Boyden from PricewaterhouseCoopers, advertising is partly to blame.

"In some cases bankruptcy is the most appropriate option but people aren't generally encouraged to go bankrupt," he told the Times

"But they are encouraged to go down the IVA route all day long on the television and radio, on the internet and in newspapers. The reason IVAs are so popular is because they are being extremely well marketed."

For many struggling with their finances, opting for a debt consolidation loan may be a better option. Figures from ClearDebt predict an IVA take-up of 44,000 for the full year, well down on other estimates of up to 80,000, an indication that many people may be opting for debt consolidation instead.