Thursday 26th of August 2010
Individual voluntary arrangement (IVA) questions might offer people a way out of their debt woe and show them how important it is to be disciplined when looking after their finances.
Figures from uSwitch show around four million women are currently deemed shopaholics - which is when 50 per cent or more of what they owe on unsecured financial products is attributable to fashion purchases.
As a result, a total £13 billion deficit has been forged on credit cards, store cards, loans and overdrafts.
In addition, the figures reveal three million men also owe significant amounts for the clothes they've been buying.
And it's not just shopaholics who are abusing plastic - some 14 million consumers in the UK now make use of credit cards for day-today spending.
Asking questions on IVAs could be a wise choice for those of you who realise you need to rein in your outlay and get your spiralling debts under control.
Founder of Addidi Anna Sofat explains lending can have a serious impact on lives, which often goes unnoticed.
She comments: "At times when credit is easy [to access], unsecured loans can add a real burden on day-to-day finances without people realising."
"Often they would buy small items or overspend on holidays on their credit card, take out a loan to buy a specific item - say [a] household item such [as a] washing machine - then have unsecured loans to buy large items such as [a] car," Ms Sofat adds.
An IVA may, however, offer cash-strapped Brits the opportunity to start afresh, tackling unsecured debts worth more than £15,000 over a period of around five years.
The measure does require a lot of hard work and the means to meet approximately 60 reduced-rate monthly repayments.
But the determination could be worth it in the end when your deficit is erased and you find yourself taking more care over your spending to avoid getting into similar money troubles as before.
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 'are a good idea for those in debt'
