Tuesday 10th of November 2009
IVA advice could be useful for the three in ten Britons who do not plan to pay back credit card debts for more than six months.
With interest rates set to rise in the new year, according to moneysupermarket.com, thousands of cash-strapped consumers could find Christmas spending pushes their finances to the limit.
The 31 per cent of people not intending to pay a penny back - according to the website - could struggle when the higher rates kick in, as more money will have to be found just to meet interest payments.
Peter Harrison, credit cards expert at moneysupermarket.com, said: "People must be extremely careful about carrying debt on credit cards for long periods of time - you don’t want to be paying for this year’s presents [in future] when rates could be at new dizzy heights."
Credit card users aged between 20 and 29 are most likely to avoid repaying their debt - so may be most interested in help from an IVA adviser.
An IVA can freeze interest rates on unsecured debts, such as credit cards, which could be ideal for those who believe they will still be in the red when higher interest rates arrive.
By Mark Waterman
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