Many Britons may need to tighten their belts or take on some form of debt management, after new figures showed that their take-home has taken a cut in real terms. Last year, over 130000 (134142) people became insolvent, be it through bankruptcy, an Individual Voluntary Arrangement (IVA) or Debt Relief Order (DRO). An IVA is often the best course of action for people with debts in excess of £15000, as it does not place the family home in danger. On top of this, after 5 years of repayments, any remaining debt is waived. The new figures from VocaLink show that take-home pay actually increased by 1.5 per cent in the three months up to March. However, with consumer price inflation at 3 per cent, wages were not keeping up with items that people want to buy.
