IVA saves 110000 people from bankruptcy

'According to accountants KPMG, £1.4bn of bad debts were written off this year after people signed up for Individual Voluntary Arrangements (IVAs).
Also this year, about 110,000 people became insolvent, topping the 100,000 mark for the first time, KPMG said.

Earlier this year government figures showed that the number of personal bankruptcies had declined as more consumers signed up for IVAs, which allow people with debts to work out a repayment plan with their creditors. ' [http://news.bbc.co.uk]

Good news, if only those IVA's could work for everyone. Sadly though you must owe atleast £15000 and be able to maintain payments of about £350.
for more on IVA's see: IVA Information.

Its Christmas but how about last chrismas' debt?

Its Christmas 2006, nearly, but according to a news report (can't find the source), a number of people in the UK are still paying back the debt they acquired due to christmas 2005.

so, what will happen to these people if they have to borrow the same amount this year to buy as many presents as last year?

Or more importantly, why get into so much debt that it takes you more than a year to pay it back? are presents really that important? i think kids would understand if you can't afford expensive presents, as long as you get them some sort of present...

People who get into this type of unnecessary debt are careless, in my book anyway..