Thursday 4th of June 2009
Pressure continues to be placed on consumers who use credit cards, research has indicated.
Moneyfacts.co.uk has found that the average rate continues to rise, now standing at 18.1 per cent.
This has increased from 16.3 per cent two years ago and could mean that consumers struggle to keep on top of their outgoings.
However, an individual voluntary arrangement (IVA) could help reduce the level of debt for those who owe more than £15,000.
Analyst at the price comparison site Michelle Slade noted that interest rises are being caused by the fact that some people are defaulting on unsecured payments in order to cope with mortgages, but an IVA could offer an alternative to this.
Indeed, moneyfacts.co.uk recently urged those who cannot afford to meet repayments to consider seeking IVA advice and other non-borrowing solutions.
- 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
- Should lenders opt for IVAs over repossessions?
