New hope for debt-ridden Brits

Debt-ridden Brits can now ease up because Debt Relief Orders are going to be introduced as an alternative to bankruptcy and individual voluntary arrangements (IVAs). It will work as another option for borrowers with low income and high debts.

London (loans-bazaar) 20 November 2006: That Debt Relief Orders are going to be introduced as an alternative to bankruptcy and individual voluntary arrangements (IVAs) can be a weight off the heart of debt-ridden Brits. This proposal has got enormous acclamation.

The Queen's Speech came out with debt relief proposals, which suggests low cost insolvency as a viable alternative to bankruptcy. With the introduction of debt relief orders borrowers with low income and high debts will get another alternative to deal with their debts comfortably.

David Harker, Citizens Advice chief executive said that low income, combined with poor financial awareness were at the root of many of their clients' debt problems. He suggested that they needed to be given some hope that they could turn things around. He also expressed that the new debt relief order offered hope for these people.

Research shows that credit cards are the main cause behind most of the debt cases in UK. Finance experts suggest that personal loans, both secured and unsecured, taken for consolidating debts can help the Brits lower their debt burden.

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