Thursday 26th of November 2009
Individual voluntary arrangement (IVA) help could be on the cards for those of you who face a constant battle with overdraft charges and other banking fees.
Commenting on the Supreme Court’s decision to stop the Office of Fair Trading being able to investigate bank charges, Credit Action says the way forward is now for you to be more aware of your finances.
You need to learn how not to become trapped in a situation where your unsecured debt results in a variety of charges and fees, further piling on the pressure, the organisation adds.
However, should you already face a backlog of unsecured financial commitments, you may want to seek IVA advice.
If you decide that an IVA is a viable solution for you to repay what you owe, up to 70 per cent of your debt will be reduced, while interest rates will be frozen. An IVA can also educate you about better financial strategies.
"It is absolutely vital that banks and consumer groups work together to help people understand and manage their money as well as possible and thus avoid many of the costly and harmful effects of the current system," Chris Tapp, director of credit action, says.
By Neil Burton
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- Government announces 'breathing space' for those needing IVA help
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- Struggling homeowners 'should seek advice'
