Tuesday 29th of December 2009
Demand for personal loans weakened in November as people turned their attention to saving for the future to strengthen their household’s financial position, a claim suggests, a goal which an individual voluntary arrangement (IVA) could help with.
The economic downturn may have panicked you into realising that your family is not prepared for difficult financial times because you have not been able to save. A large part of your income could go on meeting unsecured debt commitments.
As such, you may have decided to turn your back on borrowing more but are finding it difficult to keep up with interest repayments. You may find an IVA answers this problem by freezing the interest rates on unsecured debt such as your personal loans.
With interest rates at a standstill, you could find your money stretches further when it comes to clearing what you owe through an IVA.
"Demand for new personal loans was weak and people are paying off debt or building savings in response to economic circumstances," explains statistics director David Dooks, from the British Bankers’ Association, which released the loan figures.
It will take some time to repay what you owe through an IVA but in the future, with debt less of a problem, you could find you have some spare cash to put into a savings account.
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 'the choice' for a growing number of north-west residents
