Saturday 13th of March 2010
If you are one of the five per cent of people who admit they have stopped clearing their monthly credit card bills then you may want to start researching some individual voluntary arrangement (IVA) answers.
A new Callcredit survey reveals that this figure rises to seven per cent for those of you who are aged between 35-44 years old.
But simply burying your head in the sand will not stave off the threat of court action and potential repossession if your credit card bills reach uncontrollable levels which only bankruptcy could deal with.
Instead, undertaking an IVA can help prevent further court action and your home being repossessed as long as you keep up with the reduced-rate repayments.
Many of you may also be guilty of pretending you earn more so lenders are more likely to open their doors to you.
"If the borrower is inflating their income significantly and then maxes out their high credit limit, they are running a serious risk of getting into financial difficulties and being unable to repay the debt," explains Graham Lund, managing director of the Callcredit Information Group.
Should you find yourself in this situation then an IVA could prove to be of assistance.
By Neil Burton
- 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 young Brits break the habit of credit cards
