Tuesday 5th of October 2010
Individual voluntary arrangement (IVA) answers could be beneficial for the millions of Britons who believe they'll never be able to reduce their credit card debts.
According to new research from moneysupermarket.com, six million UK adults have owed money on plastic for a year or more, while three million customers are only ever able to meet the minimum monthly repayment.
This, the price comparison service notes, is "dangerous". That's because although it can seem you're only spending a small amount, "the interest charged on [the] balance means the total amount [you] pay back skyrockets".
Answers on IVAs could, however, offer support to those of you who find it impossible to cut down your debt.
The method of insolvency requires much discipline and dedication to meet a series of reduced-rate monthly repayments. But you may find the effort is worth it when you end up completely debt free after around five years.
Kevin Mountford, head of banking at moneysupermarket.com, comments: "Our research reveals credit cards are still playing an important role in the nation's finances."
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
- Bankruptcy-threatened Britons may turn to IVA advice
