Thursday 16th of July 2009
Britons seeking individual voluntary arrangement (IVA) advice may be told that one option could be to set up a direct debit to avoid costly charges when credit card payments are missed.
According to lovemoney.com, missed credit card repayments provide lenders with an excuse to charge borrowers a typical £12.
The website advised Britons to set up a direct debit to pay off the balance in full each month, although people who do not have the resources to do that may find out their other available options when they obtain IVA advice.
One such option could be reducing debt by up to 70 per cent through an IVA, which may also be beneficial to creditors as they will still receive monthly repayments, rather than nothing.
"Credit cards can be your best friend if you use them properly. However, if you don’t follow these essential rules, they can quickly become your worst - and most expensive - enemy," lovemoney.com noted.
It was recently reported by uSwitch.com that some large credit card providers charge up to a 32 per cent annual percentage rate for cash withdrawals made by Britons.
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
- IVAs could help keep a roof over your family's head
