Friday 6th of August 2010
Individual voluntary arrangement (IVA) answers might offer plenty of information for those of you who are finding it increasingly difficult to repay your unsecured debt.
According to a spokeswoman from Moneyfacts, it’s important those looking for credit ensure they actually have the means to meet the repayments.
She adds: “The risk of unemployment is still high for many and credit card debt is always the first out of all debts which a person will default on.”
Answers on IVAs could, however, help people turn their back on unsecured debts, as the method of insolvency freezes the interest on repayments and merges all of your outlay into one every month.
This may leave you with more control over your bank balance and completely debt-free, confident you no longer need to turn to credit in the future.
In addition, an IVA might be a more favourable option to bankruptcy, as it doesn’t require details of your money troubles to be published in the local paper, or obstruct your career path in certain sectors of employment.
By Hayley Jones
- 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
- IVAs could offer helping hand to cash-strapped households
