IVAs popular among twenty-somethings

Individual Voluntary Arrangements (IVA) are growing in popularity among younger people.

According to R3 (the Association of Business Recovery Professionals), IVAs are helping many people who are in their twenties and giving them the chance to clear their debts once and for all.

Designed as an alternative to bankruptcy, IVAs set out a payment plan for those in debt, meaning that they will have cleared their debt when the IVA is complete.

Commenting on them, vice president of R3 Nick O'Reilly said: "The thing about voluntary arrangements is that it's a finite period and you know that providing you abide by the terms of the arrangement, at the end of it, it will be successfully concluded and you will be able to write off a proportion of the money that you owe.

"That's a much better option for people than just putting it on the back burner.

"Twenty years ago you only ever got trading people taking voluntary arrangements, and they were generally in their thirties and forties.

"Now an awful lot of people in the twenties are getting themselves into debt problems, have no real assets, and the voluntary arrangement allows them the chance to at least get their affairs in order," he added.

Once an IVA is complete, borrowers can get on with their lives, even taking out an IVA mortgage to get onto the property ladder.

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