Friday 17th of July 2009
Individual voluntary arrangement (IVA) advice could soon be needed by Britons who have bought flights on a credit card.
The cost of using a credit or debit card to book a flight has gone up by over 600 per cent for some airlines, over an 18-month period, new research has revealed.
First Choice customers have to pay £2.50 for using a debit card, while those purchasing tickets with Thomas Cook UK now have to pay £10 per booking, the survey by Which? Holiday found.
Ryanair also asks customers to pay an average 614 per cent more for booking a flight with a debit card than it did 18 months ago. Meanwhile, using a credit card has risen from £2 to £5 per person each way.
As well as reining in expenditure on luxuries such as holidays, Britons may want to tackle their unmanageable credit card debt with an IVA, which could shave down monthly repayments into a figure that both the borrower and creditor agree on.
"How can some of these airlines justify charging over 600 per cent more than they did 18 months ago?" asked Lorna Cowan, editor or Which? Holiday.
Lovemoney.com recently asserted that missed credit card payments give lenders an excuse to charge a typical fine of £12.
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
- IVAs may offer financial stability in retirement
