Tuesday 16th of March 2010
Credit card customers who have had their questions on individual voluntary arrangements (IVAs) answered because of unsecured debt concerns may be pleased by a new government announcement.
The Department for Business, Innovation and Skills has revealed new rights for credit card users that could prevent people falling seriously into debt.
Britons will have the right to not receive credit limit increases and will be able to reduce their limit at any time.
Credit card customers who already find themselves in considerable debt because of their reliance on plastic may be encouraged to hear the news, but still require an IVA to dig themselves out of their current mess.
IVAs can prevent credit card lenders from taking further legal action so long as the new, monthly, reduced-rate repayments are met.
People who succumb to paying back the minimal amount will also be advised, under the new rules, of the consequences of this approach.
This will not be a problem when undertaking an IVA, however, as all credit card balances are merged into a single one, allowing outstanding debt to be cleared as a whole.
By Neil Burton
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- Government announces 'breathing space' for those needing IVA help
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