Consumers 'risking the need for IVAs as they continue to spend'
Published On 22 January 2008
More and more consumers could find themselves in need of an IVA or other debt management product in the future, after a survey showed that people are increasingly living beyond their means.Figures compiled by uSwitch showed that 4.8 million consumers spend more than they earn every month, meaning that they are increasingly sliding into debt.
As a result of increased spending on non-essential items, debt repayments have rocketed by 104 per cent over the last decade.
People now typically have to spend £356 per month servicing their existing debt, suggesting that some people could soon need to think about an IVA.
Ann Robinson, director of consumer policy at uSwitch.com, commented: "It's clear that our salaries can't keep up with our 'Hello' lifestyles.
"The shock reports from the high street are the first signal that this trend is changing and, with the credit crunch beginning to bite, consumers need to start paying serious attention to their spending habits."
The most recent figures suggested that 10,239 people took out IVAs in the third quarter of 2007.
