IVA Advisory Centre

December 23, 2010 12:40 ET

An IVA Could Help Struggling Homeowners Stay in Their Home

The IVA Advisory Centre Advises Homeowners Who Are Struggling With Debt That an IVA Could Help Them Repay What They Owe and Stay in Their Home

MANCHESTER, UNITED KINGDOM--(Marketwire - Dec. 23, 2010) - The IVA Advisory Centre has advised homeowners who are struggling with their finances and facing insolvency that an IVA could help them to clear their unsecured debts while enabling them to stay in their home.

But the company added that borrowers should discuss all the available options with a debt adviser before making any decisions.

The comments come after research by homeless charity Shelter found that 835,000 households (3%) are currently in arrears on their rent or mortgage - more than double the 405,000 (2%) in the same position this time last year.

Shelter also said that 3.7 million households (15%) say they "constantly struggle" to pay their rent or mortgage, which is almost double the figure seen last year (8%).

An expert at the IVA Advisory Centre commented:

"This research confirms that there are increasing numbers of people struggling to pay their housing costs, and this number could continue to increase once mortgage rates begin to rise. It can be very worrying not knowing whether you will even be in the same home this time next year.

"But it's important that people remember that repossession is generally a last resort for lenders, and they will usually do what they can to make sure it doesn't get to that point.

"One option for homeowners who want to avoid repossession is an IVA, which allows them to repay a portion of the unsecured debts they owe and writes off the rest on successful completion. Unlike some other forms of insolvency, an IVA doesn't involve repossession, which can be a great help for homeowners.

"On the other hand, sometimes other debt solutions such as bankruptcy can be a better option, depending on circumstances - even if the borrower is a homeowner. An expert debt adviser can help people to make that decision.

"It's also worth noting that taking early action when debts become unmanageable can often prevent things getting to the point where insolvency is the only option. Borrowers shouldn't delay getting help if they have any reason to believe their debt has become a problem."

Notes to Editors

The IVA Advisory Centre offers expert debt advice, as well as IVAs and a range of other debt solutions for people facing financial difficulties.

For more information, visit the IVA Advisory Centre website at http://www.ivaadvisorycentre.co.uk.

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