Wednesday 28th of October 2009
A number of indebted Britons could suffer under new regulations that are actually designed to help them and may wish to seek individual voluntary arrangement (IVA) advice to help end their credit card difficulties.
The government is planning to introduce new rules on credit card debts - which include forcing consumers to double their monthly repayments, reports the Guardian.
In theory, this is to help debtors pay off what they owe as quickly as possible, but in reality a number of Britons in serious debt could struggle to meet the higher repayments.
This could mean financial meltdown for thousands of credit card customers - who may wish to take IVA advice now in order to avert this potential disaster.
IVAs tackle unsecured debts of more than £15,000 by freezing interest rates and renegotiating repayment periods.
An IVA could be perfect for a consumer struggling to find the higher credit card payments as it can set the amount paid back each month based on what a person can afford.
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
- IVAs can help with personal loan and credit card debts
