www.iva.co.uk

Total UK personal debt: At the end of November 2005 the total UK personal debt was £1,148bn. The growth rate remains strong at 10.2% for the previous 12 months which equates to an increase of ~ £100bn.

Total secured lending on homes in November 2005 was £956.3bn. This has increased 10.3% in the last 12 months.

Total consumer credit lending to individuals in November 2005 was £192.1bn. This has increased 9.8% in the last 12 months.

Total lending in November 2005 grew by £9.6bn. Secured lending grew by £8.7bn in the month and consumer credit lending grew by £0.9bn in the month.

Average household debt in the UK is approximately £7,776 (excluding mortgages) and £46,491 including mortgages.

Average owed by every UK adult is approximately £24,636 (including mortgages). This grew by £205 last month.

Average consumer borrowing via credit cards, motor and retail finance deals, overdrafts and unsecured personal loans has risen to £4,121 per average UK adult at the end of November 2005. This figure translates into a 10% increase on the previous year's levels and a 45% increase since 2000.
Britain's personal debt is increasing by ~ £1 million every four minutes.

For more information please look at:
http://www.creditaction.org.uk/debtstats.htm

I work for a different debt advisor but i keep an eye on the whole market to keep up to date.

If you are in serious debt (over £20,000) please give me a call on 0208 896 3146 and i will advise you on the best course of action. this is free of charge.

If you are in less serious debt, (debts of £7,500 and above). ClearDebt may be able to help with an IVA - try the 2 minute debt test on our website (link below).

ClearDebt
www.cleardebt.co.uk

How can you get an IVA accepted on 7,500 of debt?

I have significant problems getting IVAs of anything less than £15,000 of debt accepted. Partly because of the costs involved but partly because the creditors just do not like it on a low debt they would rather see the client do it themselves or through a DMP

Matthew,

We'd agree that it is rare that someone with £7,500 of debt is suitable for an IVA. But there are times when it works.

The principal reason why IVAs at this level are not possible at this level is fees. The fees charged by most IVA providers are too high to make a VA a sensible solution for either debtor or creditor.

We’ve set out to be a low-cost and fully transparent IVA provider: You can find full details of how we charge at http://www.cleardebt.co.uk/cd_detail_1. ... id=132#149. <http://www.cleardebt.co.uk/cd_detail_1. ... id=132#149.>

Essentially, for a debt of between £7,500 and £15,000 we charge a fixed nominee’s fee (the fee for setting up the IVA) of £750. We then charge a fixed supervisors fee of £500pa (on any amount of debt). This level of fee makes a real difference to the viability of an IVA in low-debt cases. Here’s a recent, real example where someone had gone to the supplier we think of as closest to us in fees and had been turned down for an IVA:

ClearDebt
Total owed £8,850
Surplus £175
Fees, costs/ 5 yr IVA £4,171
Dividend to creditors 71p/£

Competitor
Total owed £8,850
Surplus £175
Fees, costs/ 5 yr IVA £8,578
Dividend to creditors 21p/£

We’d agree that, in most low-debt cases, better budgeting, DIY debt-management (or even, sadly, bankruptcy) could be better solutions to debt than an IVA. But that is not always the case, often because providers don’t think of offering anything other than a five year VA. In low-debt cases, where the debtor has a reasonable surplus, a three year VA might be less costly and offer a return creditors would accept. Assuming the surplus above, and our fee/cost levels, the example above could have yielded 36p/£ over three years: creditors would probably have pushed for a five-year VA, but we could have got away with shorter, especially if creditors begin to take the view that debtors will be more likely to complete a shorter VA.

Yours,

Andrew Smith


ClearDebt
www.cleardebt.co.uk

Thats very interesting!

The only downside i would assume would be low debt IVAs would pay a percentage of the fees as they would pay back more than they actually owe.

If you can get them through on that basis then fair play to you! Thumbs up!

P.S I also like the look of your site. Very informative.

Latest stas are available now. Follow the link below

http://www.creditaction.org.uk/debtstats.htm

Please note, Insolvency network DO NOT charge upfront fees for IVAs. Insolvency Practitioners fees can vary dependant on size of debt, contribution and overheads. If you need to talk to someone in the know, call me on 0870 0948040

No Fee IVA and Debt Management Advice. Do NOT pay upfront fees. Free Face to Face appointments, Just the facts 0870 0948040, www.insolvencynetwork.co.uk