Tuesday 1st of June 2010
Asking individual voluntary arrangement (IVA) questions may be of benefit to those of you who whip out the plastic for quick and easy credit.
In the run-up to the summer holidays, Moneyfacts has been encouraging tourists to try and avoid using their cards while abroad, as this could lead to expensive interest rates.
However, Michelle Slade, spokeswoman for the company, states it’s not just those flashing the plastic on holiday that should be careful, because it’s risky for people to withdraw cash on credit cards in the UK too.
Asking IVA questions, however, could be a sensible option for those of you who rely on credit every day.
IVAs may help you out of your habit of using unsecured financial products whenever you need money quickly and teach you that although they’re convenient, they could leave you with serious debts that require a lot of hard work to clear.
Ms Slade adds: "Taking money out on your credit card is never advisable even in the UK. Interest rates on cash withdrawals are charged at a higher rate than purchases."
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
- IVAs might give boost to those not educated in money matters
