Friday 26th of February 2010
If you are constantly in your overdraft then you may feel like it is a continuous uphill battle to get out of the red, something an individual voluntary arrangement (IVA) may prove to be of assistance with.
The Consumer Credit Counselling Service (CCCS) says that one of the signs that you may have a debt problem is if you use credit to pay for living expenses.
Indeed, relying on credit cards and your overdraft facility to pay for even the cheapest of everyday purchases could have set alarm bells ringing, indicating that now may be the right time to start asking questions on IVAs and how they can help you.
Using your credit cards in places like the supermarket is one habit that an IVA can break. By freezing the interest rates on such plastic and merging the balances together, credit card repayments can become more manageable.
This could mean your income is enough to cover your unsecured debt repayments.
But don’t worry about having to undertake an IVA because of a lack of disposable cash, as you are not alone.
The CCCS reveals that last year, more than 30,000 people who contacted the charity had overdraft debt averaging at £2,125.
By Rachel Powell
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- 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 help could support credit-card spending holidaymakers
