Monday 19th of July 2010
When your financial outlook is bleak and you’re finding it difficult to get out of the red, it could take just one unexpected event to push you over the edge.
Information on individual voluntary arrangements (IVAs) might, however, help you shore up your bank balance before you end up going under due to something lying unseen round the corner.
According to the Homeowners Advice Centre, it may be a rise in interest rates that has a similar effect on homeowners and landlords.
Chris Jenkins, co-owner of the organisation, commented following the publication of figures from Spareroom.co.uk that showed 43 per cent of proprietors claimed rents would no longer cover their mortgages if the base rate increased by two per cent.
IVA info may, however, offer people the opportunity to get their finances back on track and ensure they can cope with measures like this.
The method of insolvency takes around five years to complete, but merges all of your unsecured debt repayments into one, reduced-rate monthly outlay that might help you free up more disposable income.
Mr Jenkins added: "An increase in interest rates will undoubtedly push some ordinary homeowners as well as buy-to-let landlords over the edge of their financial wellbeing."
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
- Credit Action: House lost every 11.4 minutes
