Friday 15th of January 2010
Residents in Northern Ireland may need to start asking questions on individual voluntary arrangements (IVA) after they have been revealed as having the highest UK weekly spend.
The Office for National Statistics (ONS) reports that an average £479 is spent every week by families in Northern Ireland, a figure which could impact upon unsecured debt commitments.
If everyday living costs are spiralling for households, unsecured debt commitments such as credit card bills may be put on the backburner, allowing interest to rapidly accumulate.
An IVA can freeze the interest on credit card balances, which could give people more of a chance at repaying what they owe.
The ONS says that households in Wales spent the least. Northern Ireland residents may also be struggling with costs after a recent Halifax survey said the country was the least affordable location for first-time buyers, along with London.
If mortgage repayments, household bills and other living costs are adding up, it may be easy to push credit card bills to one side, or pretend they are not there.
But rather than shore up financial problems for the future, an IVA could see residents in Northern Ireland start to clear their debt over a number of years.
By Neil Burton
- 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 may increase in popularity as cash declines
