Wednesday 4th of August 2010
Individual voluntary arrangement (IVA) questions may be worth asking by Britons who have mounting debts as they try to cope with high interest rates on the cash they owe.
In an open letter published in the Guardian, various politicians, finance experts and charity workers indicated the UK has a serious problem when it comes to personal debt.
“Debt has become part and parcel of everyday life,” it stated.
Questions on IVAs could, however, be beneficial to those of you who are sick of dealing with unsecured debt repayments every month.
The measure could have you out of the red after around five years of discipline and hard work and free to make a fresh financial start without having to rely on more and more credit.
And an IVA may be particularly favourable as it freezes the interest on your deficit.
According to the letter: “Borrowing at [irresponsibly high interest] rates repeatedly tips customers into inescapable cycles of debt and poverty.”
By Kimberley Parsons
- 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 could help credit-crazed consumers
