Monday 24th of August 2009
British holidaymakers who racked up debt on credit cards to pay for their getaway could face a financial headache as the suntan fades, a claim has suggested.
Many people may have spent on their credit cards in the hope of moving the debt on to a zero per cent balance transfer deal upon their return, the Daily Mail reported.
However, individual voluntary arrangement (IVA) help may be required for people who have spent thousands on plastic in the hope of making this monetary move. Lenders have become strict about who they will provide such offers to.
Speaking to the newspaper, credit card expert Peter Harrison said: "Rate tarts who jump between zero per cent deals are having a tough time as credit is harder to come by and fees and charges have risen."
Consumers who have not been able to shift their debt to a zero per cent deal may find they now have to seek IVA advice in order to freeze the climbing interest on their balances.
Indeed, recent research from Santander Cards found that a fifth of Britons do not budget on their holidays.
By Mark Waterman
- 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
- An IVA could reduce anxiety caused by serious debt
