Rise in IVAs latest statics from TDX

There is an ongoing debate in relation to the convenience of Individual Voluntary Arrangements (IVAs) and reducing the disposable income limit to become eligible for an IVA, of late.

As per TDX, a data and technology-drive debt solution provider in the UK, the IVA has witnessed a slump of 8% in volumes in contrast to a record in the year of 2010.

TDX has evidenced over 90% of all IVA cases through TIX, a IVA servicing platform in the UK. Conversely, while there has been a drop in IVA volumes, the IVA Insolvency figures have shown a rise in percentage, as they fail significantly as compared to bankruptcies.
There does not seem to be any recovery in consumer finances either and thus, the IVA continues to remain a key mechanism for managing the distressed debt.

TDX data further revealed the doubling of repayments by people making a monthly payment of less than £175 in the year 2011, which has seen to be quadrupled since 2008.
It is also evident that indebted customers are increasingly seeking professional debt advice.

The Finance & Leasing Association (FLA code offers details on dealing with financially distressed clients for lenders and the possible drawbacks of more number of short-term loans), highlights the fact that consumers today are frequently jumping on IVAs as an option to tackle their personal debt problems.

Though the IVA market has become quite competitive in the industry, the IVAs has equivalently become easily accessible offering a structured route for the individuals who are under financial distress.

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