Wednesday 4th of August 2010
Individual voluntary arrangement (IVA) answers may benefit those of you who have racked up serious levels of unsecured debt but still want borrow on credit cards.
Figures from Moneysupermarket.com show the plastic market is becoming increasingly competitive, with consumers being offered longer interest-free promotional periods on purchase and balance transfer cards.
However, the price comparison service notes there is a downside - rates are on the up too.
It reveals the average rate now stands at 17.32 per cent.
Seeking answers on IVAs could, though, be a wise move by those of you who are often tempted by credit but can’t afford to get any further into the red.
An IVA offers you the chance to cut down the cash owed on unsecured financial products - if it’s worth more than £12,000 - by freezing the interest on your repayments.
In addition, the measure merges all of your outlay into one, potentially allowing you more control over your finances than you ever had before.
And it could mean you’re ready to turn your back on unsecured borrowing and get your bank balance back on the right track once and for all.
By Ashley Littley
- 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?
