Thursday 30th of September 2010
Seeking individual voluntary arrangement (IVA) answers could be a sensible idea for those of you who are deep in debt and want to stop being stung by your excessive credit card use.
According to a report by Which? Money, plastic users are being hit with significant charges when they pay for a transaction on card, even though it only costs companies a small amount to process the purchases.
The independent consumer adviser states services such as cinemas, airlines and hotels have been found regularly boosting the cost of an item - sometimes doubling it - with unexpected fees.
Answers on IVAs could, however, be a welcome source of information for those of you who are addicted to plastic and want to cut the deficit you've created, while halting spiralling charges at the same time.
The measure might have you completely debt free after around five years, as long as you are in full-time employment and have the resources to meet around 60 reduced-rate monthly repayments.
It does require a lot of hard work and discipline to complete, but you may find the effort is worth it when you're back in the black and in full control of your finances.
And an IVA might also demonstrate to you the importance of keeping your credit card spending in check in the future.
Commenting on the report, Which? chief executive Peter Vicary-Smith says: "People don't like card surcharges and it's no surprise when the costs they pay don't match those incurred by the retailer."
He goes on to state there is no excuse for high charges "as all too often they just seem to be an excuse for ramping up costs. While companies may want to recoup merchant fees, these charges need to be fair and transparent, so consumers know the real price before they begin a transaction."
By Mark Waterman
- 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
- Brits 'making headway' into clearing debt
