Tuesday 29th of June 2010
Individual voluntary arrangement (IVA) answers might be needed by Britons who are finding it hard to reduce their unsecured debts because the rates on credit cards are on the up.
According to a spokeswoman for Moneyfacts, the charges are "continuing to increase at quite a steep rate", currently leaving them at a 12-year high.
Answers on IVAs could, however, help people struggling the most overcome their money troubles and get out of the red.
The representative goes on to say that those who can only pay off the minimum amount on their plastic every month "are hit hardest", as doing so potentially adds hundreds of pounds extra on to the amount of cash they owe.
IVAs, though, offer people the chance to whittle away their debt over a prolonged period of time, with a typical series of 60 reduced-rate monthly payments to meet.
If completed successfully, the measure may leave you in a good financial situation, more determined than ever to avoid letting your credit spending spiral out of control and free of the worries that often come with increasing plastic rates.
By Chris King
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- 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 could be on the lips of tracker mortgage customers
