People who opt for such a solution can make sure they are rid of their debts for good, noted the Daily Express, and could help some people.
Furthermore, they do not involve having to borrow more money, meaning people can avoid getting further into the red than they already are.
Borrowers who are struggling to keep up with payments on their personal loans, credit cards and store cards may benefit from an IVA, the website stated, as they are able to repay all – or at least some – of the money they owe.
Figures from Credit Action show the average owed by every UK adult is £30,460 including mortgages, equating to 133 per cent of average earnings.
In addition to this, consumer credit lending to individuals at the end of June totalled £231 billion and the annual growth rate of consumer credit continued to fall to 1.9 per cent.