Monday 17th of May 2010
Cash-strapped Britons could find it’s easier to borrow cash - and more difficult to pay off their debts - if calls by the AA to open up the credit market are taken into consideration.
And information on individual voluntary arrangements (IVAs) may become increasingly in demand as UK adults attempt to meet their monthly repayments on credit cards and personal loans.
According to the AA, Britain’s society is polarised - as there are individuals who can obtain finance easily and those who can’t.
Mark Huggins, director of AA financial services, suggests making it easier for people who are often denied cash by lenders would be a good idea.
However, this could lead to growing numbers of Brits seeing their unsecured debts spiral out of control, potentially leaving them in need of an IVA.
IVAs offer a way out of the red by chipping away at money owed on credit cards and personal loans over a period of around five years, merging debt repayments into one manageable monthly outlay.
IVA info, therefore, may become increasingly beneficial if indeed the credit market is opened up and people find themselves in serious financial trouble as more lenders open their doors to them.
After all, it’s extremely tempting to flash the plastic and stick purchases on a card when finance is available and ready to be spent.
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
- Debt problems 'prompting increase in complaints'
