Wednesday 2nd of June 2010
The popularity of credit cards among UK consumers continues to increase, according to new figures, which may lead many more people into uncontrollable debt.
Information on individual voluntary arrangements (IVAs), may, however, make a big difference if you’re finding it difficult to get by with so much money to pay back each month.
Data from the Bank of England shows credit card lending rose by £200 million in April compared to March.
This is despite the annual growth of consumer credit actually dipping.
IVAs could offer a helping hand, though, by cutting down the cash you owe on plastic with a series of reduced-rate monthly repayments.
You may also find that they are a more suitable form of insolvency - if you’re considering bankruptcy - as they protect the equity on your family home and don’t obstruct your career path in certain sectors.
IVA info might therefore show you that it is in fact possible to drop the credit cards and get out of the red.
And after a period of around five years, you may be relieved you decided to get your finances in order, rather than continue to feed your lending habit.
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
- IVAs could help those households which need to get to grip with finances
