Friday 18th of September 2009
Individual voluntary arrangements (IVA) are one debt solution that Britons can use in order to clear their finances.
The Sun newspaper’s money section says many people are currently juggling finance agreements they cannot afford, direct debits and maxed-out credit cards and as such, seeking IVA advice could be one way to keep a household afloat.
Bankruptcy is another route of action individuals could take, but the newspaper outlines the negatives of this debt management option.
While the majority of people may not be concerned that by law, they cannot become an estate agent, company director, MP or councillor, they could be worried that being declared bankrupt may result in future assets such as an inheritance being at risk.
"IVAs are proving increasingly popular. In the first three months of 2009 the number in the UK reached 10,713, an 11 per cent increase on the first quarter of 2008," the publication asserts.
With uSwitch.com recently reporting that the interest rate on unsecured loans has soared for borrowers, an IVA could be required for households which are battling unmanageable interest rate repayments, on top of paying back the amount they took out in the first place.
By Ashley Littley
- 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 boost to credit card addicts
