Thursday 30th of September 2010
Individual voluntary arrangement (IVA) FAQs may be extremely useful for people hoping to become more prudent after years of racking up serious levels of unsecured debt.
The Bank of England reveals while total net lending to individuals rose by £1.5 billion in August, consumer credit actually fell by £100 million, with consumers apparently trying to repay money they owe on financial products such as credit cards and personal loans.
In addition, the establishment shows some £200 million worth of other outstanding loans and advances were paid back during the same period of time, while credit card lending rose by less than the previous six-month average.
Commenting on the figures, the Consumer Credit Counselling Service (CCCS) states it believes they demonstrate how debt-ridden Brits are increasingly attempting to get back into the black and cut out their money troubles once and for all.
The money charity notes it has seen record numbers - 12 per cent more than in 2009 - embarking on debt management plans.
CCCS chairman Malcolm Hurlston comments: "Low interest rates have meant that it makes financial sense to use spare money to repay debt instead of save."
However, you may find an IVA is a more appropriate measure if you owe more than £15,000 on unsecured financial products and are finding it impossible to get out of the red.
This method of insolvency whittles away the money owed over a period of around five years, with the assistance of reduced-rate monthly repayments.
And you could find the process offers you peace of mind, as - unlike bankruptcy - it doesn't require details of your financial woe to be reported in the local newspaper, protects the equity on your home and doesn't block your route into certain careers.
Mr Hurlston adds: "The credit crunch and recession have transformed people's attitude towards debt and these figures show that there is a new prudence when it comes to managing credit."
If you want to follow this growing trend, it may be time to seek answers from IVA FAQs.
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 may increase as credit card spending is up
