Monday 13th of July 2009
Individual voluntary arrangement (IVA) help may still be required by credit card borrowers, after one website claimed that the recent government white paper about the credit card industry needs to widen its remit.
According to uSwitch.com, cash withdrawal fees, overseas transactions and balance transfer fees also cause a financial headache for borrowers and should be addressed.
The website noted that around 7.3 million consumers make over 38 million credit card cash withdrawals every year. However, with some large providers charging up to 32 per cent annual percentage rate, borrowers could be hit hard.
Britons who are currently struggling with high interest repayments may find that an IVA can freeze interest, making their monthly repayments more manageable.
"Cash withdrawal fees are also a huge issue for consumers, particularly when they travel abroad," said Louise Bond, personal finance expert at uSwitch.com.
MoneyWeek writer Ruth Jackson recently advised Britons to make more than the minimum repayment for their credit card balances.
An IVA could, however, also reduce the monthly repayment for those people who are struggling to meet their credit card commitments.
- 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
- Government mortgage help figures "appalling"
