Friday 2nd of October 2009
An individual voluntary arrangement (IVA) could offer financial help to Britons who owe an average of £30,190 - or 132 per cent of the average salary - according to October’s Credit Action report.
Debt-concerned people could struggle to meet high interest payments on what they owe.
But one key advantage of an IVA is that interest rates can be frozen or lowered, which at the very least could prevent debt from growing further.
An IVA advisor negotiates new repayment terms and schedules with your creditors, which may make the route of debt clearance more achievable.
The Credit Action report also states that the average remaining mortgage debt for the 11.1 million British households with a home loan is £110,600.
Whilst an IVA cannot deal with mortgage debt directly, it may be able to improve the balance of unsecured debts which could make mortgage repayments easier to meet.
By Neil Burton
- 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
- Men - don't bury your heads in the sand on IVAs
