Tuesday 6th of October 2009
Individual voluntary arrangements (IVAs) could help worried debtors move towards financial stability.
Debts in Britain are now so high that one leading bank has stopped lending to all new customers.
The Royal Bank of Scotland (RBS) will now only give credit to existing customers who hold a current account with the financial institution.
And with credit cards scarce, consumers may wish to seek IVA advice, rather than fall back on the financial crutch of credit cards to pay their way for everyday expenses.
The Credit Action report for October revealed that total credit lending in the UK is £230 billion, with the average adult owing more than £30,000.
IVAs can help with unsecured debts of more than £15,000, so could be attractive to thousands of credit-crazed Britons.
A financial expert will formulate a realistic repayment plan, possibly freezing interest rates and lengthening payment schedules.
This could lead to a much healthier financial future which does not depend on credit cards.
Figures revealed last month by the Bank of England showed that credit card lending increased by more than £200 million in August alone.
- 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
- Information on IVAs may assist debt-ridden house hunters
