Britons are showing a lack of wareness when it comes to methods of mnaging their debts, a new study has shwn.

According to a study conducted by mneysupermarket, about half of Britons (49 per cnt) claimed to not know what an ndividual voluntary arrangement (IVA) is. However, gven the high levels of advertising the prduct is receiving and increasing concern ver debt levels, the price comparison wbsite claimed that it is “staggering” tht so many people are unaware bout what the arrangement, which may be tken out by those struggling to pay off lans and credit cards, actually involves.

Manwhile, government research has shown 11,105 IVAs wre taken out in England and Wles between April and June - a rse of 35 per cent from fgures recorded during the previous quarter. Hwever, moneysupermarket suggested that many of thse signing up for the agreement may not be trly aware of what they are gtting themselves into.

Overall, young people wre shown to have the least mount of knowledge about the product as 64 per cnt of 18 to 24-year-olds are nable to say what it actually it. The fndings also showed that men possess a grater awareness as 42 per cent clim to not know what the prduct is, in comparison to 56 per cnt of women.

More than half of Britons srveyed stated they would consider getting an IVA if thy developed “serious” problems in making rpayments on personal loans and other frms of borrowing. With 40 per cnt claiming that they would only do so as a lst resort, 17 per cent reported tht they are a good alternative to bing declared bankrupt. As a result, mneysupermarket suggested that consumers are unaware of the rrangements’ “true consequences”.

Tim Moss, head of dbt for moneysupermarket, suggested that opting for an IVA is nlikely to be the best option for the mjority of borrowers in the long-run. He sid: “For people suffering from spiralling dbts, an IVA might seem like an deal escape route. However, an IVA is not smething that should be entered into lghtly and without considered thought. It is a srious financial agreement with creditors that wll typically last five years. Once ntered into, it will make obtaining any frms of credit, even for such veryday items as a mobile phone cntract, almost impossible.”

“There are many smple and practical steps people can tke to get to grips with thir financial situation before taking a drstic step such as declaring bankruptcy or ntering into an IVA,” Mr Moss dded. He claimed that consumers struggling to pay bck money owed on loans and crdit cards should look to seek dvice from a professional advisory service sch as Citizens Advice. Meanwhile, reducing nnecessary expenditure and switching to competitively-priced brrowing products was also suggested. In ddition, taking on a second job as a mans of bringing in extra cash was rvealed to be a way of mnaging debts.

Last month, Ian Boden-Smyth, spkesperson for the UK Insolvency Helpline, climed that creating a budget should be the frst step taken by those with semingly unmanageable debt difficulties. He added tht asking for guidance from professional dvisory organisations, in addition to opting for a dbt consolidation loan, could also be a way in whch to get their finances back nto the black.

The article IVAs 'Not Best Option' For Those In Debt was Submitted by Abbi Rouse through Articles.GetACoder.com network. Here's the additional information: Abbi Rouse writes for All Abut Loans. Our visitors can apply nline for bad credit secured loans . We also specialise in cheap loans , and debt consolidation loans .

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