Wednesday 17th of February 2010
You could think the worst of the economic downturn is over but you may not want to stop getting answers on individual voluntary arrangements (IVAs) just yet.
The Council of Mortgage Lenders (CML) says that while repossession figures are not as high as expected, the repercussions of the recession will still be felt for some time.
A "bulge" in repossessions could extend over a number of years. Indeed, if you are currently juggling debts of more than £15,000 from a number of lenders then you may find that this gets out of control in the future.
Rather than take your chances and continue to spend as you do, repaying unsecured debt through an IVA now could help you avoid the risk of being repossessed if your lenders start to become increasingly demanding.
"Progress towards economic recovery is also unpredictable," the CML report notes.
However, getting out of debt could be more predictable with an IVA, which will freeze interest rates on unsecured debt and merge all your commitments into one, more manageable, monthly repayment.
By Ashley Littley
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- IVAs could offer house hunters some respite
