Many people 'are happy with their debt levels'
Many people in the UK are in control of their debt and sensibly manage their finances every month, an industry expert has claimed.
Figures suggest that the gross domestic product (GDP) of Great Britain will hit £1.33 trillion this year, slightly less than the current levels of outstanding consumer debt on things like mortgages, credit cards and personal loans.
However, Julia Dallimore, the marketing director at Picture Financial, said that people should not necessarily view high levels of consumer borrowing as a bad thing.
She explained: "Many of us use our borrowing as an acceptable means of maintaining our standard of living.
"Our UK credit levels may seem high but with the vast majority of this taken up by mortgages and other secured lending we are increasingly spreading our credit repayments over longer periods to better manage our monthly finances."
However, Ms Dallimore said that rising interest rates meant that people could find themselves increasingly stretched with their borrowing.
"In these circumstances it is important for people to ensure that they review their credit arrangements and, if necessary restructure their borrowing to allow themselves greater financial freedom each month," she added.
However, figures from the Insolvency Service show that over 10,000 people in the UK were unable to manage their finances and had to seek an IVA in the second quarter of 2007.
Source: moneyhighstreet.co.uk
Please post any news stories about IVAs here:
http://www.iva.co.uk/forum/default.asp?CAT_ID=5
See my Blog:
http://ivanews.blogs.iva.co.uk
