Many Britons attempting to tackle their personal debt are unaware that there are alternatives to individual voluntary arrangements (IVAs), it has been claimed.

A spokesperson for financial charity the Consumer Credit Counselling Service argues that high-profile advertising campaigns have seen IVAs become successful.

But consumers should remain aware of alternatives, the spokesperson adds, which could include solutions such as debt consolidation loans.

"People who go to an IVA company ... very often don't know that there are alternative options to them and alternative services," he asserts.

He continues that banks are becoming more wary of agreeing to an IVA due to the potentially high charges imposed by the company which arranges it.

The spokesperson informs Britons that IVAs are suitable in less than five per cent of cases, with bankruptcy the best option for about 15 per cent of those in debt.

For the remaining four out of five individuals, he says, "we suggest that people might be better off with other options".

Debt consolidation loans could be the best option for some people, reducing monthly repayments while putting in place a fixed schedule over which to clear personal debt.ADNFCR-1287-ID-18322154-ADNFCR

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