Thursday 22nd of October 2009
New terms and conditions of credit card use could plunge Britons further into the red - making individual voluntary arrangement (IVA) advice a tempting option for those looking to pay off their debts.
First Direct and M&S Money are taking advantage of a change in bank rules to hike the fees they charge to credit card customers.
The fee for withdrawing cash from an ATM is rising from 2.5 per cent to 2.9 per cent and charges for making a foreign currency purchase will go from 2.75 per cent to 2.99 per cent.
From November 1st, when the new terms begin, it could become more expensive for many people to use a credit card.
So instead of allowing debt to be pushed higher, taking IVA advice could provide an alternative route to financial stability for some people.
As part of the IVA process, a financial expert evaluates the individual’s debts and puts in place a repayment schedule based on how much they can afford.
IVAs can only be applied to unsecured debt, such as credit card bills, but tidying up this area of a consumer’s finances could also make secured repayments easier to find.
By Kimberley 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
- IVA answers may provide protection against rising loan rates
