Saturday 24th of July 2010
Individual voluntary arrangement (IVA) FAQs might provide answers to cash-strapped Britons who are finding it increasingly difficult to meet their monthly rent or mortgage payments.
According to figures from the National Landlords’ Association (NLA), one-fifth of private residential landlords have had tenants in rent arrears over the past three months.
IVA FAQs could, however, help to reduce that number by offering those who struggle to pay for their accommodation the chance of a fresh financial start, if it’s unsecured debts that are causing financial problems.
The method of insolvency freezes the interest on your repayments, potentially meaning you have more disposable income to use for your rent or mortgage.
However, an IVA requires a great deal of discipline and hard work and doesn’t help to cut home loan debt - so it should be carefully considered.
"[The NLA figures mean that] 240,000 are experiencing rental arrears – that is horrendous," says Alan Ward, chairman of the Residential Landlords Association.
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
- IVAs could have you debt-free in 5 years
