Tuesday 15th of June 2010
Individual voluntary arrangement (IVA) answers could show you that it is possible to get out of the red if your debts are hindering your ability to keep up with bills.
According to figures from uSwitch, six million consumers in the UK believe they’re going to find it extremely difficult to meet the cost of living over the next six months, while nine million are already using credit to try and stay afloat.
IVAs could, however, be beneficial if you find yourself in a similar situation and want to reduce your unsecured debts and access more income to go towards paying the bills.
Keeping your head above water may become easier, as they merge all your credit repayments into one, as long as you owe more than £15,000.
In addition, researching answers on IVAs might also highlight the level of discipline required to keep your finances under control in the future, as they demand serious dedication for a period of around five years.
"Rather than continuing to plug the hole by borrowing, consumers need to work harder to strip down their essential bills to the bare minimum," Ann Robinson, director of consumer policy at uSwitch, comments.
By Neil Burton
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