Wednesday 29th of July 2009
The first step to tackle debt is to make a strict budget which should not be broken, a claim has suggested, although continuing monetary problems could addressed with an individual voluntary arrangement (IVA).
A truthful budget should be able to make clear to individuals in debt where they are overspending and which expenditures need reining in, advised the Consumer Credit Counselling Service (CCCS).
Individuals should also contact their lenders to let them know they are struggling, it was suggested. However, debtors who are concerned about their creditors’ reaction may find IVA support to be of assistance.
Lenders are instructed by an IVA to cease direct contact with a borrower, with all communication done through a financial expert who will oversee the IVA.
"If you are struggling to make payments on your credit cards - especially if you are failing to meet your minimum obligations - then it is a sign you could be getting into serious trouble," said spokesperson for CCCS Tom Howard.
Britons who are looking for IVA support may want to do so as soon as possible. This could be particular important as the number of UK redundancies continue to rise.
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
- Could an IVA keep you in your home for 2010?
