Tuesday 14th of December 2010
Individual voluntary arrangement (IVA) questions may be asked by people who find they cannot cope with the debts they have built up on their credit cards in the new year.
Research carried out by moneysupermarket.com found more than five million people will use plastic products that have expensive interest rates, which could lead to people clocking up heavy repayments.
"It's no surprise to see many consumers turning to their flexible friends to tide them over," stated Kevin Mountford, head of banking at the price comparison site.
He added that customers should be looking for products that reward them for spending, while deals with high interest rates could lead to any benefits being cancelled out by charges.
IVA questions may be asked by those who rely on the finance option to cover them to the end of the year and then find they have problems servicing their debt burden in the new year.
Another cause of concern for individuals over the coming months may be the cost of energy after the fourth of the six major energy suppliers - npower - announced it is hiking its prices from January 4th.
By Kimberley Parsons
