Monday 27th of July 2009
Individual voluntary arrangement (IVA) help may be required for Britons who face charge after charge for their current accounts.
According to lovemoney.com, the small print can hide a host of hidden charges which could prove "financially disastrous" and these may impact upon Britons’ ability to meet other financial commitments.
Certain current accounts set an amount which has to be paid in every month. However, Britons who do not meet this requirement could find themselves charged.
The website also warned people to close current accounts no longer used, as leaving them dormant can lead to a financial headache, which may need to be solved by IVA support.
"Before you do anything else, check to see whether you have any dormant current accounts still open - if you do, shut them down immediately. Otherwise you could get stung by some very nasty fees," lovemoney.com said.
Forgetting to cancel direct debits attached to a dormant account could mean that when each payment is taken out, it will bounce and the charges could soon stack up. This may result in people struggling to pay other outgoings, such as interest on store cards.
IVAs can, however, freeze the interest on store cards, which could make it easier for shoppers to clear their balances, while reassuring companies that they will get their money back.
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
- Personal insolvencies 'on the up'
