Thursday 4th of March 2010
Individual voluntary arrangement (IVA) answers may be sought by some of the millions of consumers who spend more than they earn.
According to uSwitch.com, the cost of living is increasingly moving away from salaries, something which may have forced some people to rely on unsecured credit to cover everyday expenses.
Indeed, if credit and store cards are frequently used by individuals who do not have enough disposable income, then an IVA may be required to help clear those debts of more than £15,000.
An IVA will merge credit and store card balances into one, monthly, reduced-rate repayment. This could enable an income to stretch further than it previously did.
The survey reveals that 13 million people just about break even at the end of every month. But should one unexpected expense tip individuals seriously into the red then an IVA could help.
"Short-term debt solutions may seem an efficient way to fund spending, but they can lead to severe long-term debt issues if not managed properly," asserts direct of consumer policy at uSwitch.com Ann Robinson.
By Mark Waterman
- 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 questions could offer support to struggling self-employed
