Saturday 23rd of January 2010
If you live in a low-income household then you may currently be struggling to meet your unsecured debt repayments, although you could find an individual voluntary arrangement (IVA) answers such concerns.
This could be particularly problematic if lenders no longer accept you for more personal loans and instead you have gone via other more expensive channels to get your hands on cash.
Family Action reports that it is often a problem for low-income families to access mainstream credit, although an IVA could help you sever your reliance on high-interest loans.
An IVA can freeze the interest rate on all of your unsecured personal loans, while all their repayments will be merged into one, monthly figure.
This could help you stay on top of what you owe, rather than being pressured from all directions as you try to reason with a number of different lenders.
"We are concerned that the recession will put pressure on the already disadvantaged groups we work with," claims Rhian Beynon, head of policy and campaigns at Family Action.
Many of these people live in council houses, she adds.
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
- IVA answers to help those concerned about interest rate rises?
