IVA's up by 35% 

Individual voluntary arrangements or IVA's are on the increase. Last year, over eleven thousand people qualified for an IVA; the last quarter (April to June 2007) saw a massive 35% increase. The increase in commercial advertising and recent interest rate rises have lead to this dramatic rise in the number of people slashing their debts.

Lenders get tough 

Although its not all good news with the recent credit crisis the banks are getting strict and rejecting packages put together by debt management agencies. Although under the law in England and Wales, individuals can get up to 75% written off, this is subject to the lenders agreeing and things have not been going their way lately.

These agreements are serious and although they avoid bankruptcy they can make life difficult over the next five years. They may seem like an ideal way out for people struggling with severe debts but they have consequences.