Tuesday 20th of April 2010
Seeking individual voluntary arrangement (IVA) answers could be the first step on the road out of the red, following comments from one financial expert.
According to Adrian Lowcock, senior investment advisor at Bestinvest, more and more people are starting to see the benefits of paying off their debt, rather than consolidating it, as rates on personal loans continue to rise.
And IVAs may help you get rid of unsecured debt on personal loans and credit cards worth more than £15,000.
It will take you five years to become debt-free - if you meet the monthly repayments - but by putting in the effort now, you can stop your debts spiralling out of control and taking significantly longer to wipe out.
Mr Lowcock goes on to add: "Borrowers can’t access the debt that they used to be able to get."
And IVAs might be the wise option if you’re one of these people who have been rejected by lenders.
If you’re getting refused credit by banks this should be seen as a warning sign, indicating now could be the time to start the ball rolling and get your finances in check.
By Neil Burton
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- 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 helps £38k-a-year teacher pay back debt
