Tuesday 20th of July 2010
Individual voluntary arrangement (IVA) answers might help Britons who can’t stop their credit card spending and put an end to their mounting debts.
According to figures from moneysupermarket.com, more than five million holidaymakers are planning to fund their summer vacation with plastic this year.
But those who are already strapped for cash could find this adds to their financial worries if they can’t pay back what they owe.
IVA answers might, therefore, offer a helping hand to individuals who want to be able to afford the cost of a getaway without pushing themselves further into the red.
The form of insolvency reduces unsecured debt worth more than £15,000 by freezing the interest on their outstanding credit and merging all of their various repayments into one, reduced-rate monthly outlay.
Kevin Mountford, head of banking at moneysupermarket.com, says: "The decision to borrow should never be taken lightly and consumers need to be careful that they don’t fall into a debt trap - they should never spend more on their card than they can afford to pay back."
By Chris King
- 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
- IVAs could reduce Britain's 'reliance' on unsecured borrowings
