Friday 30th of October 2009
Total lending to Britons rose by £700 million during September, according to the Bank of England - debts that individual voluntary arrangements (IVAs) could help to repay.
Almost 28,000 non-mortgage loans were taken out during the month and the annualised growth rate of loans taken out increased by 0.1 per cent.
Credit card spending experienced arguably the biggest impact, with total card debt rising by £100 million.
Cash-strapped consumers piling spending on to their credit card may find an IVA is the perfect way to stabilise their financial position.
One advantage of activating an IVA is that they can freeze interest rates - which may be important to debtors worried that an inability to make repayments in the short term could cause their debt to escalate.
Britons may also be interested in seeking IVA advice if they are struggling to meet the monthly repayments on their current debt.
An IVA expert can negotiate with creditors to set new payment amounts and schedules based on what the consumer can afford.
By Kimberley 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
- IVAs could bring a halt to 'debt crisis'
