Wednesday 25th of November 2009
Individual voluntary arrangement (IVA) help could prove useful for those of you who have piled purchases on to plastic thinking that repayments can be easily met.
The Daily Mail reports that people who rely on credit cards for purchases have two ways to make this payment method cheaper - switching to a zero per cent interest rate card or using one which gives cash back and other rewards.
Many of you may have been drawn into using these cards thinking they would prove cost effective, but now initial low-interest rate periods have lapsed, repayments have started to add up.
Rather than ignoring this, one option that is viable is to ask for IVA advice, where financial experts - well versed in supporting those households in serious debt for the first time - can help negotiate a repayment plan.
"Every December, shoppers spend upwards of £10 billion on credit cards and more than £20 billion on their debit cards," the newspaper reveals.
Instead of ignoring debt problems and relying on plastic, now could be the right time for you to start thinking about clearing your balances, especially as interest rates on tracker mortgages - which you may have - are expected to rise next year, further denting your coffers.
By Kim Parsons
- 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
- Can an IVA protect me from climbing energy bills?
