Wednesday 1st of September 2010
Individual voluntary arrangement (IVA) answers might be useful for those of you who continue to borrow large sums of cash to try and stay afloat.
According to the latest Credit Action debt statistics, total lending by banks and building societies increased by £300 million in July, with the amount of consumer credit given out by financial institutions also going up – by £200 million.
In addition, the figures show total consumer credit lending to individuals stood at £217 billion during the same period of time.
Answers on IVAs may, however, offer people a way out of their vicious cycle of lending.
If you've amassed more than £15,000 of unsecured debts owed to three or more creditors, the measure could help whittle away the deficit over a period of around five years.
And those of you who've considered bankruptcy as a means of insolvency may find an IVA is more suitable, as it protects the equity on your family home and doesn't require details of your money troubles to be published in your local newspaper.
This could leave you completely debt-free and with a renewed determination not to allow your debts to spiral out of control once again.
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
- IVA help may be of use to credit card holders
