Wednesday 23rd of December 2009
If you are often lured in by zero per cent interest deals on store cards then you may find this has landed you in serious debt, although an individual voluntary arrangement (IVA) could help you clear a number of different store cards.
Shoppers have been warned about being taken in by such deals, with the E-Platinum Plus store card - which claims to have a zero per cent annual percentage rate - being highlighted by MoneySavingExpert.com.
Despite its claim, it charges the equivalent of more than 130 per cent on some typical borrowings and you have to pay a £79.95 joining fee and a £4.95 monthly maintenance fee. But these are only mentioned in the small print.
In times of need, you may have relied on store cards to see you through, but you could now be left paying the price. If you armed yourself with a number of cards then you may find it impossible to meet all your commitments.
An IVA could answer that. It will merge all your store card balances into one, monthly repayment with a frozen interest rate. Also, it should prevent your various store card lenders from pestering you for repayments as all contact will be done through a trained IVA negotiator.
By Hayley Jones
- 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
- Have you stopped paying your credit card bills in full?
