Monday 6th of July 2009
Britons who try to juggle their debt by regularly switching credit card deals may find that the time has come for them to ask for individual voluntary arrangement (IVA) help.
According to uSwitch.com, one in ten people have had a credit card application rejected over the past year and this may include borrowers hoping to transfer their balances on to a zero per cent interest deal.
The website also pointed to the average annual percentage rate standing at 17.3 per cent, which could result in those customers coming to the end of a low-interest deal facing high interest repayments.
IVA advice could, however, help borrowers lower their monthly repayments. An IVA can freeze credit and store card interest rates, which could take some of the financial burden off Britons.
Louise Bond, personal finance expert at uSwitch.com, said: "The knock-on effect for credit card customers is that those with a less than perfect credit history could find themselves being turned down for the next-best zero per cent deal, forcing them to pay interest."
The website recently reported that around 1.3 million people have had their credit card limit increase applications turned down over the past 12 months.
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- 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 debt-riddled parents in London
