IVA & Debt Consolidation Advice

According to the Consumer Credit Counseling Service, they have experienced an increased of 65% in the number of clients over the past year. In addition, charity Citizens Advice experienced a 15% increase in debt cases since last year. This is blamed on increases in fuel and housing costs that put additional pressure on budgets that are already stretched to the limit.

In addition to an increase in the overall cases of consumers seeking debt relief, there has been a dramatic rise in the number of elderly people seeking help with males over the age of 60 owning an average of £36,940. This group showed the largest debts both in overall debt and in debt to income ratios, which averaged 36:1. The age group with the biggest debt problems in both genders was those in the age group of 40-59. In spite of earning the most, they had an average debt load of £35,000. The CCS also reported seeing more single mothers on low incomes in the 40-59 year old age bracket asking for help. Even thrifty Yorkshire has seen an increase in the number of citizens over 60 with financial problems. Excluding mortgages, the Bank of England reports that total debt rose by 9% last year to £213 billion

Increases in all indicators of financial stress increased last year with record increases in the number of bankruptcy and IVA’s being filed. In addition, foreclosures increased to levels that have not been seen since the latter part of the 1990s recession. The fact that these financial stresses are affecting the senior citizens is not a good sign for the future of the economy. The fact that it is occurring all over the world means there must be a collective effort to protect the financial well-being of our older citizens who have worked all their lives to have a more secure future. By securing the future of all of our citizens over 40, we can assure them a more financially stress-free future during their retirement years.