Friday 15th of October 2010
Credit cards and personal loans are seen as a source of quick cash in difficult times. However, excessive use of such financial products could leave borrowers with debt that's impossible to manage.
Information on individual voluntary arrangements (IVAs) may, however, be useful for people who have found themselves deep in the red as a result of trying to keep their firms afloat in tough economic conditions.
That's because new research from Investec Specialist Private Bank and the Entrepreneurs' Organization in the UK shows growing numbers of self-employed Brits are relying on credit to help fund their business.
The study reveals 19 per cent of respondents will use plastic to boost their companies' coffers over the next 12 months, while 50 per cent will take out a bank loan or go into an overdraft.
An IVA could, though, be a wise choice for such self-employed Brits who have found themselves with huge unsecured debts following their efforts to help their enterprises.
The measure is only available for those in full-time employment, with £15,000 or more outstanding on credit cards or personal loans, but IVA info could show you there is a way out of your money woes after all, with reduced-rate monthly repayments whittling away your deficit over a period of around five years.
By Ashley Littley
- 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 information could help with credit card debts
