Monday 9th of August 2010
Individual voluntary arrangement (IVA) answers could offer significant information to those of you who have racked up serious levels of debt by trying to borrow your way out of money troubles.
Writing for the Daily Mail, general secretary of Compass Gavin Hayes explains this can be bad news for both the individual and the economy, especially when it’s extremely expensive to pay off the cash owed.
He adds: “The problem is made all the worse, of course, by high street banks’ refusal to offer short-term and flexible credit.”
Mr Hayes says the high rates seen on personal loans and credit cards means such financial institutions are bordering on “legal loan sharking”.
Answers on IVAs may, however, help those of you who turn to credit when in need.
The method of insolvency could have you completely debt-free after around five years and mean your income isn’t constantly swallowed up by expensive monthly repayments.
And you might find an IVA helps you leave your borrowing habit behind and take full control of your finances.
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
- IVA could offer better repayment plan than credit card companies
