Tuesday 15th of June 2010
Individual voluntary arrangement (IVA) questions might help cash-strapped Britons avoid desperate measures that could leave them with spiralling debts.
Citizens Advice is currently warning people about the dangers of companies that offer fake loans for a fee and typically prey on those who are frantically trying to get out of the red.
Such firms promise quick and easy cash, but often never pay up, leaving borrowers even more out of pocket.
It could be time to ask questions on IVAs, however, if your situation has got to the point where you’re willing to do anything to get rid of the money you owe.
IVAs, although they require serious amounts of hard work, could lead you out of unsecured debt and into the black, by merging your repayments into one, reduced-rate monthly outlay and freezing the interest on the outstanding cash.
And the form of insolvency could leave you thankful you decided to take control of your finances before your situation got out of hand.
"We urge people to be very wary of signing up for loans that require a payment upfront - the chances are this is a scam," Citizens Advice director of policy Teresa Perchard comments.
By Hayley Jones
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