Friday 23rd of April 2010
Individual voluntary arrangement (IVA) questions could be needed if you earn a decent wage but somehow have ended up more than £15,000 in debt.
Director of Credit Action Chris Tapp says Brits who find themselves swimming in a sea of debt often have a steady wage because otherwise lenders would not have allowed them to borrow so much.
You may have taken out a credit card or personal loan or two in order to help keep up your lifestyle of a nice home and up-to-date car.
And banks might have been willing to accept you because of your steady income.
But if your wage cannot cover the increasing interest repayments on your unsecured debts, an IVA could help.
Mr Tapp says about people who undertake an IVA: "They would normally be able to repay, over a number of years, getting on to 30 or 40 per cent and sometimes 50 per cent of the money owed," adding such repayment plans are for Brits with "a reasonable level of income".
Once your debt has been cleared, you may want to keep in mind that sometimes saving up for what you want, rather than piling it on the plastic, can make the purchase that little bit more rewarding.
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
- Credit Action: Debt takes a large chunk out of incomes
