TDX Group, the leading provider of analytics-based debt management products and services, reports a rise of almost 40% in the volume of IVA applications from January to September this year.
TDX Group sees over 80% of all IVA applications in England and Wales, and its data shows that as of the end of September, 35,307 people have successfully applied for an IVA in 2009, with total unsecured debt worth over 1.8 billion.
Alongside the increase in the number of IVAs, applicants are proposing to pay less back now than a year ago. In Q3 2008 the average proposed monthly contribution was 345.43 compared to 316.19 in Q3 2009.
Homeowners now represent over half (51%) of all new IVA applicants, up from 39% in Q3 2008, when the majority (51%) were tenants. The average income per applicant is 24,852, demonstrating that IVAs have increasingly become the domain of middle income homeowners. The majority (54%) of IVA applicants are aged between 35 and 55 but 12% are aged over 55.
Matt Trueman, head of financial difficulties at TDX Group said: “These figures clearly demonstrate how over the last nine months the recession has worsened the UKs personal debt crisis. Overall, volumes have increased people are paying back less each month.
About TDX Group
TDX Group delivers innovative debt liquidation solutions to address the needs of major banking, utility and government creditors. Working closely with clients to design bespoke solutions across debt recovery, asset sale and financial difficulties management, TDX Group has revolutionised the UK debt market with solutions like Segmented SaleTM and The Insolvency Exchange (TIX) – a central exchange to manage Individual Voluntary Arrangements (IVAs) on behalf of creditors. Today, clients across the UK, Spain and Europe look to TDX Group to maximise their debt liquidation in challenging market conditions.
Source: http://www.creditman.biz/uk/members/news-view.asp?newsviewID=10772
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