Sunday 21st of February 2010
Yesterday (February 20th) marked Debt Freedom Day because we spend the first 50 days of 2010 earning enough money simply to pay off the interest on debt, Unbiased.co.uk revealed.
And interest levels could be sky high, after the website stated that credit card debt increased in the UK by more than £4 billion last year, although you may find an individual voluntary arrangement (IVA) answers such a problem.
IVAs can merge different credit card balances that add up to more than £15,000 into one, monthly, reduced-interest rate repayment, which could prove to be the ideal helping-hand for those of you who want to avoid bankruptcy.
The study found that personal loan customers also saw repayment levels soar in 2009 and an IVA can also help you clear such borrowings, as well as store card balances.
"Debts can quickly mount up to a considerable sum and this date demonstrates that debt is something that we need to take control of and actively manage," asserted Karen Barrett, chief executive of Unbiased.co.uk.
Making a move to repay unsecured debt through an IVA now could prevent borrowings reaching uncontrollable levels that can only be reined in through bankruptcy.
But under a bankruptcy, a home may have to be repossessed in order to raise the cash to pay back creditors.
By Kim Parsons
- 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 be needed for Brits who won't give up credit cards
