Tuesday 18th of May 2010
Inflation is on the rise, meaning the cost of our everyday essentials is gradually ticking up month on month and making it increasingly difficult to get by.
However, information on individual voluntary arrangements (IVAs) may help out if the combination of large unsecured debts and rising goods prices is taking its toll.
According to the Office for National Statistics, the Consumer Prices Index rose to 3.7 per cent in April, up from 3.4 per cent in March.
When you’re paying a significant amount more on items like food and clothes than you were the year before, it can be hard enough to make your salary last.
But when you owe money on credit cards and personal loans, it’s even more tricky to spread your income around.
IVAs, though, can chip away at the money you owe and bring you out of the red, provided you meet the reduced-rate monthly repayments that replace your original debts.
IVA info could therefore show you that putting in some hard work to pay back your unsecured debts may result in emerging completely debt-free.
And in around five years’ time, you might find yourself fully prepared for further rises in inflation, with all of your hard-earned cash being sufficient to cover your family’s essentials.
By Rachel Powell
- 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 help may be needed for stay-at-home mums who rely on credit
