As the amount of Individual Voluntary Arrangements (IVAs) rises again this month and the speculation over misleading IVA advertisement continues, one of the UK’s main credit reference agencies, Experian, has concerns many people in an IVA don’t know what they are getting themselves into.

The advice from Experian echoes much of the warnings we have heard lately throughout the financial industry about debt: make sure you are getting the right debt advice and enter into the right debt solution.

Jill Stevens, Director of Consumer Affairs at Experian, urges people to receive professional advice before entering into an IVA.

"An IVA appears on your credit report for at least six years, so even after your IVA ends, typically after five years, you might continue to experience difficulties getting credit and other financial services because you entered into an IVA in the past," she warns.

"While an IVA may be the best option for some people, it should only ever be considered after receiving impartial advice from a responsible organisation," Ms Stevens said.

Chief Executive of the Money Advice Trust, Joanna Elson said: "IVAs are only appropriate for a small proportion of people and this route should only be entered into after receiving best advice from a reputable source. It is vital that people are fully advised on the costs and implications of entering into an IVA, particularly if there could be a risk to their mortgaged property."