The amount of people in the UK unable to find debt help will increase in 2008 meaning the IVA will be the only option for people looking to avoid bankruptcy.
Analysts predict that there could be as much as a 20% rise in the amount of IVAs applied for as providers tighten up their lending conditions.
With the UK buried in debt, credit companies and other sources of finance are waking up to the fact that things need to change. As a result people with serious debt will no longer be able to seek quick-fix financial aid, leaving them with no choice other than an IVA or bankruptcy.
Economist George Johns from Barclays added, "We are forecasting small increases in unemployment as the economy slows, so we would expect the insolvency data to pick up over the course of 2008."
2008 is going to be the year that more people than ever wake up to their debt problems as the UK attempts to turn things round.
If you have serious debt problems then don't hesitate to seek help. It's important that you act quickly to turn things around, regardless of how severe your financial circumstances are.