Monday 23rd of August 2010
Credit cards may seem a convenient way to access credit and purchase desired items at the click of a finger. But this can often cause problems if you can't afford to pay off your balance.
Information on IVAs could, however, offer a solution to those of you who are deep in the red as a result of plastic and want to turn your back on unsecured lending for good.
According to a spokeswoman for Moneyfacts.co.uk, growing numbers of people have found it increasingly difficult to meet the repayments on their cards of late.
"Obviously if you're struggling to make repayments, if you've lost your job or you're having your hours cut, the first thing that you're going to forgo is your unsecured lending," she says.
IVA information could, though, make a big difference by offering you a way out of your unsecured debts with around 60 monthly, reduced-rate payments that whittle down your deficit.
And you might find you have renewed discipline and financial control once you complete the measure, potentially leaving you ready to turn away from credit cards and personal loans once and for all.
By Kimberley Parsons
- 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
- Information on IVAs may provide much-needed financial education to Brits
