Saturday 8th of May 2010
Individual voluntary arrangements (IVAs) may be beneficial for people who are struggling to afford the mounting cost of repaying their unsecured debts.
According to figures from Credit Action, Brits paid a total of £67.8 billion in interest on their debt repayments in the last 12 months.
This corresponds to an average of £2,692 per household.
However, juggling the cost of essential, everyday items as well as expensive debt repayments could force you deep into the red.
If you owe more than £15,000 on credit cards and personal loans you could benefit from embarking on an IVA.
That’s because IVAs cut the interest on the money you owe, freeing income to spend on the things that are really important in life.
They also protect the equity on your family home, meaning you may not be faced with the harrowing prospect of repossession, which could happen with bankruptcy.
In times of financial and economic uncertainty, asking IVA questions may provide you with the peace of mind that you’re not shelling out money you don’t have on interest and can keep a roof over your family’s head.
- 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
- Seeking advice "best policy" for debtors
