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There has been a sharp increase in the number of consumers signing up for Debt Management Plans, or entering into an IVA, since the start of the recession.

The real problems began a long time before the credit crunch hit. Whilst the UK was enjoying something of a boom that just seemed to go on and on, people continued to spend more and more. Employment opportunities were plentiful, and house prices soared, giving people confidence and making them feel wealthier than they really were.

When the global financial meltdown struck, the house of cards collapsed. All of a sudden, people were beginning to loose their jobs as companies struggled to survive the downturn. Then house prices collapsed, cancelling out all of the equity growth from the last five years. Suddenly people were not so well off anymore.

The bills still have to be paid. A lot of consumers accrued massive debts, during the good times, on personal loans, credit cards and store cards and for many these are now unaffordable. Many consumers have turned to debt specialists in an effort to deal with their financial difficulties.

Debt Management Plans and IVAs are a way of consolidating and reducing debt repayments, without having to borrow money by way of a consolidation loan. They are designed to help people that are really struggling with their repayments, and can offer a financial lifeline to many. Consumers have been signing on to these programmes in record numbers, and the rush does not look like it’s going to end anytime soon.

If you are suffering with serious money worries, then it is best to seek advice now, before things get any worse.

Recession sees increase in Debt Management and IVA cases is a post from: TheDebtPeople.co.uk