Saturday 31st of July 2010
Information on individual voluntary arrangements (IVAs) could help people who are using unsecured finance to live beyond their means.
Chris Tapp, director of charity Credit Action, observed some people use their credit card as a "financial crutch" and a short-term solution to their problems.
"They can’t afford to live on what they have got but they don’t have the discipline or budgeting skills [they need]," he observed.
Such a situation could result in a borrower’s debts spiralling out of control and Mr Tapp described the reliance on credit as a "worrying trend".
However, those who owe more than £15,000 could find that IVA answers outline a potential solution.
This form of insolvency allows for interest to be frozen and the debt paid off after a period of five years and although it requires hard work and commitment, it is an alternative to bankruptcy - which can be damaging to some career paths.
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
- Could IVA advice help you tackle your credit card debts?
