Wednesday 29th of September 2010
Individual voluntary arrangement (IVA) FAQs might be a useful source of information for people who have racked up significant amounts of unsecured debt due to having poor understanding of their money.
According to new figures from price comparison service uSwitch, 70 per cent of those in the red believe their cash problems are down to a lack of financial education, with the same proportion stating personal finance is much more complicated nowadays than it ever has been.
Furthermore, some 24 per cent have been hit by charges because they weren't aware of the terms and conditions of various products.
IVA FAQs could, however, boost Britons' knowledge of how to get out of debt for good.
The measure whittles away money owed on credit cards and personal loans worth more than £15,000 with the assistance of around 60 reduced-rate monthly repayments.
It also ensures the equity on your family home is protected, while not requiring details of your cash troubles to be printed in the local newspaper - which is not the case with bankruptcy.
Ann Robinson, director of consumer policy at the firm says: "While our debt is increasing, our knowledge is decreasing - the situation is a ticking time bomb."
By Rachel Powell
- 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
- IVAs could peg back rising debt
