Monday 30th of November 2009
Individual voluntary arrangement (IVA) advice could be part of the reason why new Bank of England data shows that consumers have reduced their debt and are relying less on unsecured credit.
The statistics reveal that consumer credit fell by a net £0.6 billion in October, which is below the previous six-month average of -£0.1 billion.
Personal loan and advanced credit dropped by £0.7 billion, which could highlight that in order to improve their financial stability, an increasing number of people are turning to IVA help and kick-starting their repayments to get out of the red.
As well as repaying personal loans through IVAs, individuals might want to also clear their credit card balances.
Credit card lending rose by £0.1 billion in October. Consumers who are currently juggling a number of plastic commitments can merge their balances into one more affordable monthly repayment with an IVA, which could negate the need for them to borrow more to meet repayments.
The figures come ahead of tomorrow’s (December 1st) Credit Action report, which is set to reveal the average amount of unsecured debt Britons currently hold, as well as the number of bankruptcies declared in the UK.
By Hayley Jones
- 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 could allow you to wake up to your financial problems
