Monday 21st of September 2009
Individual voluntary arrangements (IVA) are one way that Britons can clear their credit card debt and it appears that many people are looking to reduce their balances.
New figures from the UK Payments Administration show that the amount spent on credit cards has fallen to its lowest level for two years.
With the interest rate on many credit cards remaining high, some households may have decided to seek IVA advice before their repayments become fully out of control.
Indeed, an IVA can freeze the interest rate on credit card debt and can merge a number of plastic commitments into one monthly, manageable repayment.
"With the risk of unemployment maybe they have shut up shop and gone for the fact that if they haven’t got it, they don’t spend it," suggests Michelle Slade, spokesperson for Moneyfacts.co.uk.
The report from the UK Payments Administration revealed that spending on credit cards was in negative growth in the second quarter of 2009.
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
- Bankrupt Brits 'not allowed basic banking services'
