Monday 25th of October 2010
Individual voluntary arrangement (IVA) questions might be useful for people in Britain who are concerned their financial situation is worsening because of the amount they borrow in the form of unsecured loans.
According to the latest Bank of England Trends in Lending Report, credit card borrowing fell in August compared to the month before. However, the data showed demand for unsecured loans increased during the same period of time.
Commenting on the findings, Martin Bamford, chartered financial planner at Informed Choice, said: "Debt tends to breed more debt, so a rise in unsecured loans points towards even greater levels of debt in the future."
Questions on IVAs could, however, be useful for those who want to put an end to the vicious cycle of borrowing into which they have got themselves.
The measure might have you completely debt-free after around five years, with reduced-rate repayments freezing interest and charges on the money owed on credit cards and personal loans.
Mr Bamford added there will always be people who "fail to manage their finances [properly] and need to use debt to fund their lifestyles".
By Chris King
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- 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 could benefit cash-strapped parents
