The BBC has revealed that two of Britain’s largest banks, The Royal Bank of Scotland (RBS) and Halifax Bank of Scotland (HBOS), were close to financial collapse in the middle of October. The BBC’s Panorama programme stated that, because of the global credit crisis, the banks were finding it impossible to raise short term credit. According to debt advice specialists, without this sort of funding it is likely that a bank would be unable to function normally.

The banks were bailed out by the government in the form of guarantees and loans. The treasury and the Bank of England provided the debt help in the form of £350 billion in government loans and guarantees. This move helped to stabilise the sector and saved the banks from financial ruin.

Many taxpayers are, however, annoyed that their money has been used to prop up the banks when the financial crisis was brought about by those same banks that are now being saved. With record levels of personal debt, more consumers are in need of debt advice or debt management plans and, in a growing number of more serious cases, people are seeking IVA help and IVA advice to avoid their own financial downfall.

Where is the government help for them?