en-us http://backend.userland.com/rss Your Friends @ Myvesta.org.uk (stever@myvesta.org) myvestaukblog_archive.html stever@myvesta.org 114717058496305973 The rise in consumer debt, and the consequent increase in people who risk being swamped by their borrowings, has generated investor interest in debt advisers, with debts.co.uk announcing today that it plans to float on the junior market, Aim.

The Chesterfield-based company, owner of Debtcare and The Debt Counsellors, has carved itself a niche in the rise of individual voluntary arrangements (IVAs), a less-severe alternative to bankruptcy, in which people come to an agreement with creditors on how to pay debts.

Last year, about 16,000 people opted for an IVA, but the figure is expected to swell in the coming years as a result of rising indebtedness and slowing house-price and wage inflation. Last week, official figures showed a record number of personal bankruptcies in the first three months of the year - up 13% at 23,351. Mortgage repossessions were at a 13-year high, with 22,997 in the first quarter, more than twice the number in the same period last year.

Debts.co.uk is looking to raise about £4m of new money to fund expansion of its business to meet growing demand for debt advice. Seymour Pierce brokers will start marketing the firm this week with an eye to a flotation next month.

The move will sort out any money worries for three of the company's directors, including the founder Paul Carter, who will pocket about £4m between them from the deal and retain majority control.

Guardian Newspapers Limited

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