Tuesday 30th of March 2010
Everyone needs a bit of retail therapy every now and again.
But if you have large unsecured debts and know you can’t afford to shell out on a new dress or television, is it really therapy when splashing the cash makes you feel so guilty?
Asking individual voluntary arrangement (IVA) questions could be one way to make you feel better about past shopping trips, as IVAs can cut money owed on personal loans and credit cards - if it’s more than £15,000 - and help free up some income to stick in your coffers.
According to figures from uSwitch, British consumers are turning their back on the High Street because of how it makes them feel.
Some 35 per cent feel in the wrong after making a purchase, while 28 per cent of these people do so because they know they couldn’t afford the transaction.
What’s more, nine per cent of shoppers have bought on credit in the knowledge they couldn’t afford to pay it back.
Commenting on the findings, Ann Robinson, director of consumer policy at the price comparison service, said: "Financial constraints, feelings of guilt and a return to frugality mean that consumers are no longer in thrall to the High Street."
By sorting out your finances through an IVA, you could take comfort from the knowledge you are finally getting round to becoming debt free.
Written by Kimberley Parsons
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- 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
- An IVA can turn unpredictable debt into predictable repayments
