Wednesday 27th of January 2010
Britons keen to tackle their credit rating in the years following the recession could find an IVA answers their need in the shortest time possible.
According to price comparison site moneysupermarket.com, a good credit rating has become a "must-have item".
However, for people with poor credit ratings, regaining a firm financial footing could prove difficult - and trying to borrow more can compound the problem.
Tim Moss, head of loans and debt at the site, says: "Being turned down for credit is likely to have a negative impact on your overall credit rating."
Consumers in such circumstances could find that an IVA answers their predicament in a timely manner.
Although an IVA will remain on your credit report for six years, it can allow debts to be paid off - and in some cases written off.
Once the six years is up, you can rebuild your financial footing and should be able to gain access to credit again more easily.
By Rachel Powell
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- 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
- Retiring in next few years? Asking IVA questions may be good preparation
