Monday 12th of July 2010
When debts begin to spiral out of control, it can become extremely difficult to keep on top of all of your essential payments, which could leave you in danger of losing a grip on your family home.
Information on individual voluntary arrangements (IVAs) might, though, help make your income go further by showing you it’s possible to get all of your unsecured debts out of the way.
According to figures from the Consumer Financial Education Body, close to one in ten people don’t know how much they’re shelling out on their mortgage, while 15 per cent have no idea what type of deal they’re on.
Embarking on an IVA may be a suitable alternative for those of you who owe more than £15,000 on credit cards and loans and are looking into the possibility of insolvency after losing a grip on your finances - even though an IVA doesn’t help with mortgage repayments.
Doing so may have you debt-free after around five years, potentially meaning you have a renewed ability to meet your home loan obligations and other responsibilities.
And IVA info could lead to you deciding the method is preferable to bankruptcy, as it protects the equity on your family home.
"It is in everybody’s interest to be in the driving seat. It is all about being in control – this way we can feel much happier about things," says Mary Graham, regional manager for the Consumer Financial Education Body.
Posted by Chris King
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- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- IVA answers could help older Brits stay warm this winter
