As the volume of consumer debt in the UK continues to rise, so to does the number of people entering into IVA’s.

Consumer debt now totals close to 1.5 trillion pounds in the UK. As a result, the IVA market is experiencing unprecedented growth with the number of people partaking in an arrangement increasing by more than 50% in 2006 alone.

Faired against our European counterparts, statistics suggest that the average UK consumer is almost twice as indebted as the average European citizen (Western). With a change in legislation on the horizon, allowing an IVA to proceed on the basis that the majority of creditors vote in favour (opposed to 75%) analysts predict that the stage is set for further growth.

In our current economic climate, there is little sign of consumer debt decreasing in the foreseeable future, and with over 20% of the seriously indebted owing more than £11’000 the IVA is likely to become even more commonplace.