Thursday 20th of May 2010
Regularly using your credit card can be extremely tempting, but if you already owe a lot of money you could find yourself deeper in the red due to mounting annual percentage rates (APR).
And information on individual voluntary arrangements (IVAs) may consequently come in handy to show you how you can chip away at your debts and potentially leave your money troubles behind.
According to moneysupermarket.com, plastic users need to be careful when it comes to using their card, as various transactions - like gambling, postal order or foreign currency - might come with higher APRs than they expect.
IVAs, however, could be of benefit if you get hit by transaction fees and charges one too many times, pushing your debt over the edge.
They can cut the money you owe on unsecured financial products worth more than £15,000 over a period of five years, merging all of your repayments into one monthly outlay.
And by seeking IVA info, you could find the impetus to put in some hard work and get your finances sorted once and for all.
Kevin Mountford, head of banking at the price comparison service, says: "Credit card users have to be careful how and where they use their card."
By Rachel Powell
- 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 may help change your debt attitudes
