Monday 13th of September 2010
Individual voluntary arrangement (IVA) FAQs could be a useful source of information for those of you who are concerned about your ability to afford the cost of accommodation should proposed housing benefit cuts take place.
Citizens Advice has called for the government to take action to ensure the impact felt by households across the country isn't too severe.
That's because the organisation believes planned legislation, which includes a cap on housing benefit payments from April 2011, could potentially have a devastating effect.
According to the body, the projected regulations will lead to "higher levels of poverty, debt, rent arrears and homelessness".
As a result, it has submitted evidence to the Department of Work and Pensions' Social Security Advisory Committee, which ended its consultation on the changes last week.
Researching IVA FAQs, may, however be a sensible option for those of you who are worried about the effect of the cuts combined with your already high levels of personal debt.
If you owe more than £15,000 on unsecured financial products, this method of insolvency helps cut the deficit over a period of around five years.
And it could give you more control over your money, as the measure freezes the interest on your debt repayments and merges them into one monthly outlay.
Additionally, an IVA protects the equity on your family home, meaning you may not have to sell the property as an asset, as often required in bankruptcy.
Commenting on the news, Citizens Advice chief executive Gillian Guy says: "We are extremely concerned at the potential impact of the cuts to housing benefit on people's ability to pay their rents and avoid rent arrears and homelessness.
"Tens of thousands of private tenants will find their rent is unaffordable and will therefore need to move at short notice to areas with lower rents as a result of the proposed cuts."
By Hayley Jones
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