Thursday 21st of January 2010
A man who lost his job after the company went into administration has spoken out about his concerns over how he could meet his store and credit card repayments, a report says, although an individual voluntary arrangement (IVA) could help those of you in a similar situation.
Tom Maguire lost his job with FlyGlobespan Airways one week before Christmas and faced the holiday period without being paid for work he had done in November and December, the BBC reveals.
He had payment protection on his credit card and set up payment plans for his store cards, as well as returning his car to the finance firm.
"My focus was then my finances. I, like most people, had a credit card, store cards, car and mortgage payments and I had to start contacting companies to explain my situation," he tells the news provider.
If only you or your partner have a job because one of you has been made redundant then you may want to start asking questions on IVAs as soon as possible, rather than letting your debt problems build up.
An IVA can freeze the interest on credit and store cards, which could prove to be of assistance while you or your partner is unemployed.
However, not everyone will be as proactive as Mr Maguire and take steps to get answers on IVAs for fear of the stigma attached to asking for help.
Unlike bankruptcy, an IVA should remain a private matter and as long as you keep up with your repayments, there is no reason why your family home should be put at risk.
Mr Maguire adds: "I am determined to turn this situation around and am looking at starting my own business and hopefully finding something positive from all of this."
Even self-employed individuals can apply for an IVA as long as they can show that their debts do not impact upon business survival and that a regular income can still be generated to meet repayments.
By Rachel Powell
- 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
- Worried about rising utility bills? IVA answers may offer assistance
