Wednesday 22nd of July 2009
Obtaining individual voluntary arrangement (IVA) help could be a better option than clinging on to old credit cards.
Britons currently hoard approximately 38 million unused credit cards, according to uSwitch.com.
This means that a spare credit limit of an average £200 billion is at hand to individuals who may require some extra funding during the recession.
IVA support could be a better financial option than turning to credit cards should extra cash be required for monetary commitments.
Louise Bond, personal finance expert at uSwitch.com, said: "In times of such financial turbulence, it’s hardly surprising that people don’t want to let go of what they consider to be a financial lifeline."
Using credit cards could become even more attractive after the latest Credit Action report noted that over 3,000 individuals are being made redundant every day.
IVAs could also be a better alternative to credit cards after Moneyexpert.com stated that lenders have decreased the period of free balance transfers on zero per cent credit cards.
By Hayley Jones
- 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 out families in need of a bigger home
