Tuesday 8th of December 2009
Last December Britons piled 11 per cent more purchases on credit cards then they did during the other months of the year, new research shows, although merging plastic balances through an individual voluntary arrangement (IVA) could help in this situation.
Further unsecured debt troubles also come in the form of store cards, a purchasing tool which paid for 25 per cent more worth of goods last December, the Finance and Leasing Association (FLA) reports.
People who have found themselves using store and credit cards as a financial crutch may have a few questions on IVAs before deciding that these are the best repayment method for their circumstances.
Many shoppers may decide to keep quiet about their actual debt levels through fear of friends and colleagues finding out. Some could even be concerned about putting their home at risk by admitting they need help.
An IVA - unlike bankruptcy - is a private arrangement and as long as people keep up with their monthly repayments there is no reason for court or legal action, including the repossession of a home.
By Kim Parsons
- 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: Thousands looking for financial help every day
