Thursday 11th of February 2010
Individual voluntary arrangement (IVA) answers may be required by those tenants who have let their unsecured debts slide in order to put their cash towards keeping up with rent.
You, like many others, will probably prioritise your rent over your credit and store card bills and, as such, the interest repayments may now be climbing towards uncontrollable levels.
But an IVA could control these interest repayments by freezing them, allowing you to get a better grip on your finances.
A new report by the Association of Residential Letting Agents (Arla) reveals that 55 per cent of its members have seen more tenants struggling to meet their rent commitments.
If this is you, it could reflect the wider difficulties your finances face, something which an IVA may help with.
"The problem of rental arrears will therefore persist and potentially grow in seriousness as tenants get caught in a web of debt," states Ian Potter, operations manager at Arla.
Repaying debt through an IVA could help you keep your finances in check and prevent the risk of you eventually falling behind with your rent too, something which could lead to you losing your home.
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
- IVAs could help the "new generation" of those in debt
