People struggling with their debts can benefit from entering into an individual voluntary arrangements (IVA) as it often offers a solution to debt problems, according to an insolvency advisor.
The Association of Business Recovery Professionals (R3) says that IVAs are useful because they avoid bankruptcy or putting debt problems "on the back burner".
A spokesman for the group explained that IVAs allow people to agree to pay a certain amount over a finite period.
"You know that providing you abide by the terms of the arrangement, at the end of it will be successfully concluded and you will be able to write off a proportion of the money that you owe," he said.
He added that it was becoming an increasingly popular option with young people, who use IVAs to attend to their debt problems before entering into big commitments such as a mortgage.
IVAs were introduced under the 1986 Insolvency Act as an alternative to bankruptcy.
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