Monday 17th of May 2010
Embarking on an individual voluntary arrangement (IVA) may be an option if you want to regain a grip on your finances, which have taken a hit because of mounting unsecured debts.
Figures from the Co-operative Bank show that 39 per cent of Britons don’t regularly review their finances - and end up with money troubles as a result.
Furthermore, some five per cent never check their bank balances at all.
Asking IVA questions, however, could be a sensible choice if you want to start taking responsibility for your cash, but have debts on credit cards and personal loans that are giving you a headache.
That’s because IVAs give you the chance to become debt-free after a period of hard work and discipline - typically 60 months - in which your various original debts will replaced by one monthly payment.
This is calculated based on how much you can afford to repay - taking your essential living costs into account - and could lead to you emerging out of the red once you’ve successfully completed the IVA, even if some money is still outstanding.
And you could find this is enough to lead you into the regular habit of checking over your finances and stave off the threat of escalating debts.
- 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
- Could agreeing to an IVA reduce the burden on your parents?
