Monday 2nd of August 2010
Information on individual voluntary arrangements (IVAs) may help credit card users who have racked up large amounts of debt because they are unaware of the true cost of such forms of finance.
According to a study conducted by Optimum Research on behalf of the Post Office, more than two-fifths of those planning to use a credit card abroad do not know what they will be paying in fees.
Only a third are sure they will not be charged for using their plastic on holiday, which could mean many people already facing money worries go deeper into debt.
"This summer millions of travellers will waste money on unnecessary fees and worryingly many are not even aware of how much this will increase their holiday spending," warns head of cards at the Post Office Az Alibhai.
IVA information may, however, allow those who are racking up high charges to see there is an alternative to relying on credit.
As long as you owe £15,000 or more to at least three creditors and are willing to put in the hard work required to get out of debt, this form of insolvency could help you start living within your means.
By Chris King
- 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 chosen by entrepreneur, rather than bankruptcy
