Thursday 9th of July 2009
Lenders are not always in a position to know about any changes to a borrower’s financial circumstances, it has been claimed, which may mean Britons will have to seek their own individual voluntary arrangement (IVA) advice in order to sort out their debts.
Borrowers have to take responsibility for their financial situation and should not apply for more cash than they can afford to pay back, moneysupermarket.com stated.
People who do find themselves in serious debt because of an inability to keep up with a variety of financial commitments may find that arranging IVA help could set them on the right path to repay their lenders as much as they can afford.
"It is up to the person to stop using their credit card to the max if they know that they haven’t got a salary coming in," said a spokesperson for moneysupermarket.com.
When credit card interest repayments get too much for some, an IVA could freeze the interest and allow individuals the time to agree a level which better suits their circumstances.
A recent Credit Action report noted that average household debt in the UK - when unsecured loans are included - stands at £21,640.
- 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
- An IVA could allow lenders to see you in a more positive light
