Thursday 21st of October 2010
Individual voluntary arrangement (IVA) answers could be useful for people who fear their money troubles will leave them vulnerable following the government's Comprehensive Spending Review (CSR).
According to the Consumer Credit Counselling Service (CCCS), the public sector cuts announced yesterday (October 20th) will make it extremely difficult for Brits to meet their debt repayments.
This, the firm says, is due to the high numbers of job losses that are expected, bans on overtime and reduced hours.
Answers on IVAs may, however, be useful for those who fear they will be unable to pay back the money they owe on credit cards and personal loans.
The measure is only available for those in full-time employment and with unsecured debts worth more than £15,000, but if you're eligible for the process, it could have you out f the red after around five years.
CCCS external affairs director Delroy Corinaldi states: "Last year, only a quarter of CCCS clients were in a position to repay their debts and this trend has continued into 2010."
By Rachel Powell
- 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 questions to increase as more Brits pushed over the edge?
