Wednesday 2nd of September 2009
Individual voluntary arrangement (IVA) help could be required by some Britons after a new Credit Action report reveals that in the UK, £181 million of interest is paid daily.
The report notes that over the last 12 months, Britain’s interest repayments on personal debt stands at £65.9 billion, although an IVA can freeze the interest on unsecured debt such as store and credit cards.
Each household forks out an average £2,637 every year in interest repayments on their total debt. This could make it difficult for people to keep up with their financial commitments because of the level of high interest repayments.
An IVA can, however, freeze the interest repayments, as well as merging unsecured debt into a more manageable, single, monthly repayment.
The Credit Action report also shows that an average UK adult had borrowed around £4,780 on credit cards, overdrafts, unsecured personal loans and motor and retail finance deals, by the end of July.
Recent Bank of England figures reveal that credit card lending increased by £0.1 billion during July.
By Ashley Littley
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