Saturday 13th of February 2010
Many Britons use credit cards because they are a convenient payment option, a claim suggests, but for those who now find the repayments an inconvenience, an individual voluntary arrangement (IVA) could help.
According to moneysupermarket.com, if used wisely, credit cards can help Britons meet costs that they may not have the cash available for.
It suggests that clearing the balance every month could help people earn rewards. But for those individuals who struggle to even pay the minimum back, it could be time to start asking questions on IVAs.
One question could be how an IVA helps with credit cards. An IVA will merge different credit cards together for debts of more than £15,000, meaning people only have one, monthly repayment to focus on.
Furthermore, the interest rate on such cards is frozen, which could help cash-concerned consumers to regain control of their finances.
The Consumer Credit Counselling Service recently revealed that last year it recommended IVAs for 11,877 of its clients.
By Neil Burton
- 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
- Mortgages over 100% 'should be banned'
