Friday 2nd of October 2009
An individual voluntary arrangement (IVA) could be of help to the 27 per cent of Britons who paid for this summer’s holiday on a credit card.
Research by moneysupermarket.com reveals that a further 28 per cent of people spent between £500 and £1,000 on their break in 2009.
With interest rates on credit cards typically around the 18 per cent mark, sun-seekers may now want to pay off the outstanding debt as quickly as possible.
Laura Howard, financial journalist for moneysupermarket.com, said: "While there is not much you can do about the weather, you can at least tackle any financial summer hangover head on."
An IVA restructures your credit card repayments, making what you fork out each month more manageable.
It is available for all unsecured loans so no matter how much of a hit your plastic has taken over the summer, an IVA could reduce the interest repayments and reduce the amount of holiday debt.
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 answers could help Brits worried about impending cuts
