Thursday 18th of February 2010
The availability of consumer credit was reined in during January, a new report reveals, something which could indicate that it is time to start getting answers on individual voluntary arrangements (IVAs).
If you have found that lenders’ doors slam shut in your face because they deem you as a risky borrower then it could highlight how damaging your credit score has become.
A Bank of England report shows that demand for personal loans and credit cards did weaken last month when compared to the same month the previous year.
But if you are already juggling a number of personal loans and credit cards then it could be wise not to ask for any more credit from lenders.
Taking on more debt could see you push up your interest repayments to seriously uncontrollable amounts, something an IVA could prove to be of assistance with.
IVAs can freeze the interest rates on credit cards and personal loans. Lenders may also be assured that by undertaking an IVA, you are trying your best to get out of debt.
Indeed, letting debt continue to pile up could result in the need for a bankruptcy, although creditors may feel more positive about IVAs as a larger proportion of your debt is repaid under this type of repayment.
By Mark Waterman
- 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
- Bank of England measures 'may stimulate lending'
