Hampshire town struggles with debt

THURSDAY, NOVEMBER 23, 2006

The town of Andover has the fifth most IVAs in the country, according to Experian.

The town of Andover, in Hampshire, has the fifth most IVAs in the country, according to Experian.

In the last quarter alone there has been a rise of 150 per cent in the amount of people that have been forced to take out IVAs, the Basingstoke Gazette reports.

In fact the amount of people taking out IVAs is more than double the national average, according to the figures from Experian.

The manager of Andover Citizens Advice Bureau, Ange Moon, said: "Our experience shows that IVAs are more advantageous to people with assets and a good income which may be lost through the bankruptcy procedure but could be retained if an IVA is entered into."

Those considering entering into an IVA should use caution however, as they are not right for everybody and can have far reaching consequences.

If a debtor takes out an IVA and then fails to keep up with the payments, they are then added on to the amount owed and the borrower will be forced into bankruptcy.

Of late, taking out IVAs has grown increasingly popular in the UK, a trend that has the banking and credit industry worried.

Borrowers defaulting on their debts is proving increasingly costly for lenders.