Wednesday 15th of April 2009
Consumers who have built up significant amounts of debt have been urged to consider seeking IVA advice in order to combat the problem.
Moneywise noted that entering into an IVA can mean that much of what is owed is written off, with the typical borrower paying back around 25 per cent of debt.
And the personal finance magazine explained that the total amount outstanding is cancelled after five years, allowing a consumer to begin again.
However, Beccy Boden Wilks - spokesperson for charity National Debtline - suggested that those who are struggling seek IVA help.
"The solution will depend on your circumstances. Getting advice will help you understand your options and take the right steps towards a debt-free future," she was quoted as saying.
Robert Sinclair, director at the Association of Mortgage Intermediaries, recently observed that a lack of subprime lending has left many people with poor credit histories needing to turn to non-borrowing solutions such as IVAs and bankruptcy.
- 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 'answers the debt troubles of Plymouth businessman'
