|
News Index
Next
Previous
Despite the high profile coverage of debt issues in recent months, the majority
of consumers are reluctant to discuss the problem with others, survey has
revealed.
Of those questioned, 80% reported debts of over £ 10,000 while 37% reported
debts of over £ 30,000. Of these, 88% have sought information and advice about
their debts.
Over half admit that their first action is to do their own research on the
Internet while only 18% consult their bank, and just 13% confided in family and
friends.
The survey was conducted by
IVA-info-UK.org.uk, in the wake of figures released last week revealing an
overall increase in individual insolvencies of 10% over the previous quarter and
66% on the same quarter last year.
The cross section of respondents, consumers from a number of debt solutions
providers, including the Citizens Advice Bureau, CCCS, and Thomas Charles, were
also questioned about the service they received.
The survey also investigated the factors influencing people’s choice of provider
and asked them to rate their experience. When selecting a debt solutions
provider, the number one factor influencing consumer’s choice is ‘debt knowledge
and expertise’ (47%).
The appropriateness of the solution offered (38%) and the speed of response
(35%) is also rated as important. Surprisingly fees were rated as far less
important, with only 18% of respondents stating that it was a factor in their
decision.
For those who used a debt solutions provider, the verdict was positive with the
majority (68%) reporting that the appropriateness of the solution they were
offered was ‘Quite Good’ or ‘Excellent’.
The majority also rated the following elements as ‘Excellent’: Debt Knowledge
and Expertise, Fee structure, Speed of response, and Telephone manner.
Company websites also faired well with 57% rating provider’s online presence
only as ‘Quite good’ or ‘Excellent’.
Around 7% of respondents said they had taken no action since consulting a debt
solutions provider.
Women were less likely to take action after speaking to an adviser, with 9% of
women taking no further action, compared with just 5% of men.
The level of debt was shown to be a factor in the solution selected, with Debt
Management plans being favoured by those with debts of less than £15,000, while
the majority of those in more than £ 15,000 of debt chose to do an IVA.
Broken down by gender, however, IVAs were only the preferred option for men,
with 45% percent opting for an IVA, compared with just 28% of women, who
narrowly favoured an informal debt management plan (29%).
While 57% of respondents reported that their debt problem was not solved, an
impressive 76% of respondents reported that they were happy, overall, with the
debt solutions provider they used and 77% said that they would recommend the
debt solutions provider they used to a friend or family member.
These stats perhaps reflect the long term solution offered by IVAs, whereby
people pay what they can afford over 60 months, before having the remaining debt
written off.
An IVA-info-UK.org.uk spokesperson
commented: “The picture revealed by the research is a positive one.
"Encouragingly, the numbers indicate that people are, in the main, being
directed to the best solution for their individual needs but we cannot
underestimate the importance of quality advice from properly trained
practitioners.”
Source:
Getting Paid
|
