One of the UK’s largest debt charities has recently revealed that rising numbers of new IVA cases may not necessarily stem from an increasingly severe consumer debt problem.

The DAB suggests that although consumer debt is obviously fuelling the number of new IVA cases, the fact that consumers are only just beginning to familiarise themselves with the process, is the primary reason for its rapid growth.

A spokesperson for the charity commented that widespread promotion of the IVA has brought a great number of consumers out of the woodwork, and away from the possible prospect of Bankruptcy. Also, in spite of a recent spate of media condemnation with regards to the procedure, in many cases, it is a viable and even necessary process.

In other news, one of the UK’s largest accountancy firms has announced that 2007 will mark a record year for the number of people entering into an IVA agreement, with the total number of new cases expected to exceed the 40,000 mark by Q4.

According to recent research by one of the UK’s largest supermarket chains (J Sainsbury’s), debt consolidation is one of the most common reasons for Brits to procure a personal loan.

Apparently, almost half of all loan applicants apply for finance with the intention of consolidating all of their outstanding debts into one lower, more affordable, monthly repayment.

A spokesperson for the chain suggested that rising consumer debt in the UK is forcing many people to review their financial situation, with a large proportion seeking more effective means to manage their credit commitments.

However, he also advised that any consumer who is considering the loan consolidation route must also actively way up the pros and cons of doing so. A separate study revealed that a sizeable percentage of consumers who do choose such routes actually worsen their situation due to poor management of the loan.

In conclusion, a debt consolidation loan can be an extremely effective way to manage a number of smaller credit commitments, but consumers must realise that self-control is key to its success and in a large number of cases, the latter is usually all that is needed to control a person’s debt situation.

One of the UK’s leading banking institutions has recently announced its intention to make the negative effects of mismanaged overdrafts, or specifically, the charges associated them, publicly available at its numerous cash points located across the country.

The office of fair-trading is said to be delighted at the news, and a spokesperson for the body commented that this type of awareness will go towards helping debt prone consumers avoid the debt related perils associated to such facilities.

He also suggested that the OFT was more than supportive in any type of initiative, devised to make the consumer spend a little more time thinking, before they act. However, the biggest concern at the moment is firmly squared towards the actual charges themselves, which many believe are unethical and are directly responsible for the further hardships of our countries most debt stricken individuals.

At the current time, there has not been an official court ruling against the charges but a number of independent financial bodies and consumer groups are actively lobbying against the charges, in an attempt to have them withdrawn completely.

New information released by the Citizens Advice Bureau suggests that just shy of 7000 Brits contact the agency, on a daily basis, with debt related issues.

Accordingly, of all enquires received by the Bureau, debt help matters are by far the most prevalent. They have also noted that faired against the same time last year, the number of individuals seeking help has increased by more than 55%.

Issues of personal debt are recognised to be one of the nations top concerns. This fact is further reflected in recent Government statistics, which reveals that personal debt has collectively surpassed the 1.5 Trillion pound mark and is still growing.

A spokesperson for the Bureau suggested that whilst as a country, we have been revelling in some fantastic credit offerings; it is unfortunate to see that many are seriously suffering to cope with escalating debt as a result. He further commented that actual visits to their Branches, usually from people in the most dire of situations, had also increased by around 30% in the last year alone.

One of the UK’s largest banking institutions has recently discovered that more than a ¼ of all its customers admit to delaying bill payments by around 3 weeks, with an additional half of all customers waiting until their creditors send a late payment prompt in the post, before they take action.

The institution also found that the vast majority of its customers state that the though of being in debt to their creditors, greatly increased personal stress levels.

However, around 8% of people were not concerned that their accounts were overdue and did not feel any more pressure to pay, when issued with a payment chaser.

A spokesperson for the organisation stated that although there are a percentage of people who simply do not care that they are in debt, the vast majority of people obviously do.

The general consensus suggests that people dread the prospect of receiving a chaser letter from their creditors, and the results also seem to prove that most people struggle to manage their personal finances, from time to time.

In other news, the government has recently announced its intention to inject an additional sum of money in to schools, as a means to fund personal finance classes. Such classes will almost certainly be used to combat situations, as detailed above.

According to one of the UK’s leading sub prime home loan providers, any individual who has defaulted on credit repayments in the past or has become indebted as a result of mismanaged finance, may struggle to attain a home loan in the not to distant future.

A spokesperson for the organisation stated that many lenders who operate within the bad credit arena, may soon start to retract a large proportion of their products thus leaving those consumers who have struggled with debt in the past, with little place to turn.

One of the countries largest sub prime mortgage providers (Kensington financial) announced a string of profit warning in the early part of 2007. Since then, a number of other high profile providers have systematically withdrawn their products, all of which were targeted specifically towards the FTB market. Some of the more controversial products such as the 125% mortgage were withdrawn almost as quickly as they were launched.

The sub prime market has been the cause of much concern of late, following on from the collapse of the US sub prime industry, which noted the fall of one of the countries largest credit providers. Hostile economic conditions in the UK are causing many firms to tread with caution, lest they suffer the same fate as our cousins across the pond.

According to recent findings by a leading international credit agency, more than 25% of parents spend in excess of £90 on their offspring’s first birthday party with an additional £60 spent on presents. Bringing the average price of a party, for the UK’s average 1 year old, to around £150.

The firm further discovered that UK households with 2 children would dedicate almost £500 each year on parties, causing many people to succumb to personal debt as a result.

A separate poll revealed that the vast majority of parents feel that their child’s birthday should be the most celebrated time of the year, above Christmas and Easter. For this reason, parents are unlikely to scrimp on the celebrations choosing to bend over backwards in order to give their child what they want.

The most costly elements of the average child’s party are said to include the venue, food and party bags. However, parties are also becoming more extravagant, and some parents are now adding the cost of clowns, puppet shows and even petting zoos to the bill.

One expert commented that although it is important to value your child’s early years and to make them as memorable as possible, it is also important to ensure that you do not run up any big debts as a result of doing so. Remember, it is possible to have a great day without spending a fortune.

According to a recent poll, the vast proportion of indebted UK citizens would apply serious thought to the use of an Individual Voluntary Arrangement (IVA), as a means to tackle their debt predicament.

Based on statistics compiled by the government’s consumer insolvency agency, more than 55% of all indebted adults would gladly consider the option of an IVA, if they felt and/or were advised that the use of such a tool would be beneficial.

In addition, more than 15% of those surveyed stated that the IVA is a genuinely useful tool for people in serious financial trouble, and that more should be done to increase consumer awareness of the procedure.

The latter statement is further supported in the discovery that less than 20% of people aged between 20-30 are aware of the term IVA, yet alone the implications of its use. However, around 15% of the populous feel that the very presence of the IVA encourages consumers to artificially increase their debt levels, safe in the knowledge that they are able to write off the lions share at a later date.

According to a recent study, millions of parents in the UK are said to be struggling financially due to the escalating costs associated to modern schooling.

The study, which was conducted by a leading consumer advice group, discovered that almost 75% of parents have either become or fear they will become, seriously indebted as a result of trying to meet their childrens mounting school costs.

The study revealed that the most common school related financial burdens, which are forcing some parents into debt, include annual excursions, exercise books, and numerous different school uniforms.

A representative of the group suggested that it was the responsibility of the Government to offer adequate support both financially and advisory to any parent feeling the strain, and that parents and children alike, should not have to suffer in the name of education.

In addition, one expert also suggested that there is little point in offering free education to the masses, if parents feel as though they are then charged inadvertently for the privilege. As besides the obvious financial detriment caused, it can also hinder the Childs progress and/or available options.