More consumers than ever are desperately seeking a way to escape their debt burden in the UK. PriceWaterhouseCoopers (PWC) stated that there were 120,000 personal insolvencies during 2009 due to serious debt problems. A UK debt solution, such as a debt management plan, debt relief order and Individual Voluntary Arrangement (IVA), could provide a viable alternative to bankruptcy.
Why Are Debt Free Solutions Necessary?
A report by the Bank of England revealed that the amount of credit card debt written off by the banks rose from £812m to £1.6bn in the third quarter of 2009. This doesn't mean that the consumer is forgiven the money they owe, it is just sold on for as little as 10p in the £1 to collection agencies. The remainder is written off against taxes and the agency then pursues the debtor for the full amount. A debt relief program helps struggling consumers to reach an amicable agreement with creditors to pay off debt.