Thursday 4th of March 2010
If you were planning on a pay rise to help you with your unsecured debt repayments then you may have to think again, although an individual voluntary arrangement (IVA) could help with the situation.
A new study by uSwitch.com reveals that over nine million of you will only get a wage increase below the 3.5 per cent Consumer Price Index.
But over 16 million of you think that you will not get an income boost. If you have been delaying your debt repayments in the hope of getting a wage rise this year then you may be in for a shock.
If your household income comes to a standstill then getting answers on IVAs may help. IVAs can freeze the interest rates on credit and store cards and personal loans, making repayments more manageable on a frozen wage.
Commenting on the fact that many of you cannot take a wage rise for granted, Ann Robinson, director of consumer policy at uSwitch.com, says: "Consumers have little scope for reducing their own budget deficits unless they work harder to strip down their essential bills to the bare minimum, rather than continue to plug the hole by borrowing."
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 help mums and dads better meet childcare costs
