Tuesday 29th of June 2010
Britons with money troubles could find it yet harder to pay back their debts following the new measures announced in last week’s emergency Budget.
Information on individual voluntary arrangements (IVAs) could, therefore, become more popular among cash-strapped individuals affected by legislation such as the rise in VAT set to come into effect in 2011.
Growing numbers of people could end up struggling to get by as a result of the legislation, as it will "reduce the money people have left each month to pay back what they owe", according to a spokesman for the Consumer Credit Counselling Service (CCCS).
An IVA may, though, help you emerge debt-free after a period of around five years, as they freeze the interest on your monthly repayments, which are merged into one.
And IVA info might just show you that you don’t have to put up with losing control of your finances in the face of government decisions, but can regain a grip on your bank balance with discipline and hard work.
"VAT rises and benefit cuts pose a combined problem for vulnerable people who face having to meet increased costs with lower monthly incomes," says the CCCS representative.
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
- Addicted to plastic? IVAs could help you kick the habit
