Monday 6th of July 2009
Individual voluntary arrangements (IVAs) can work if it is the right debt management solution for a person, it has been said.
The Times reported that IVAs are one financial lifeline that debt advisers may suggest to borrowers who are finding it difficult to keep up with debt.
An increasing number of Britons may seek IVA help, after the newspaper reported that four million people are set to receive debt advice this year.
However, the relationship between the borrower and adviser must be based on trust, the publication added.
The issue of trust for those seeking IVA help could be even more important, after the Office of Fair Trading recently revealed that there has been an increase in bogus firms who claim they can sell a person’s debt.
It advised Britons who are struggling financially to contact their lenders about repayment options. One such option could be an IVA, where creditors may still receive a monthly payment but at a level which the borrower can afford.
- 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
- Lenders growing cautious, expert notes
