Friday 12th of March 2010
Many of you have applied for credit cards and other financial support tools knowing full well you would not be able to keep up with the repayments, a new survey shows.
The poll by Callcredit reveals that six per cent of British adults have applied for credit despite not having the financial clout to back the monthly repayments up.
If the interest rates of your credit cards is taking a serious toll on your finances and you cannot meet repayments, then you may find an individual voluntary arrangement (IVA) answers your problem.
An IVA can freeze the interest rate on credit cards. Without the burden of rising rates, you may find you are better able to meet your monthly monetary commitments.
The survey also states that almost one in ten of you have over-inflated your income when applying for credit to give you a better chance of being accepted.
Commenting on the findings, managing director of the Callcredit Information Group Graham Lund says: "While the end of the recession may be in sight, it seems that many consumers continue to struggle in managing their finances."
But undertaking an IVA could mean that finances become more manageable for those of you who upped your reliance on credit during the economic downturn.
By Hayley Jones
- 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 'more affordable than bankruptcy'
