Wednesday 23rd of December 2009
If you regularly search for personal loans and credit cards you could be damaging your credit reference without realising, although repaying unsecured debts through an individual voluntary arrangement (IVA)could eventually improve this situation.
Concerns have been raised that Britons like yourself who shop around for the best deal are leaving a trail of marks against their name. When it comes to applying for future credit, you could be rejected or charged a higher rate of interest.
Rather than taking on more loan and credit card repayments, you may find an IVA answers your serious shortage of funds by freezing interest rates, giving you more a chance of meeting repayments.
"Christmas is precisely the time when consumers are likely to be feeling the pinch … While it is right to protect consumers from potentially reckless lending, equally they shouldn’t be penalised for shopping around for loans," says John McFall, chairman of the Treasury Committee, which has demanded an investigation into lenders’ practices.
Rather than searching for the best personal loan, why don’t you see if an IVA proves to be a better solution? By merging your unsecured borrowings into a single, monthly and more manageable repayment, you could clear your debt and, much further down the line, enjoy the potential of a better credit rating.
By Ashley Littley
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- 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
- Ex-footballer 'to seek IVA answers'
