Friday 9th of July 2010
Asking individual voluntary arrangement (IVA) questions could help Britons see that there is an alternative to cutting down debt on the amount of cash they owe their creditors
Figures from Age UK show there is currently a trend of people turning to equity release in a bid to pay off their debt - with 35 per cent of customers in the UK using the process to do so.
This is compared to 36 per cent who made use of it to afford a holiday and 46 per cent putting the money generated towards property maintenance and repairs.
IVA questions and answers could, however, show those of you struggling to get by that it is possible to get out of the red without using equity release as a debt consolidation tool.
That’s because IVAs offer you the chance to become completely debt-free after around five years and 60 monthly, reduced-rate payments - if you’re employed and owe more than £15,000 on financial products such as credit cards and personal loans.
Andrea Rozario, director general at Safe Home Income Plans, comments: "If people are looking to take equity release to get out of debt then … it is a concern."
By Neil Burton
- 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
- Bankrupt football club director may be better off with IVA
