Monday 15th of February 2010
Individual voluntary arrangements (IVAs) could be required by those Britons who rely on credit cards for everyday costs, despite the risk of high interest repayments.
A new poll by moneysupermarket.com reveals that one in five people have more than three credit cards stashed away in their purses and wallets.
Nearly a fifth of individuals use their credit card at least once a day, a habit which could result in many borrowers getting some answers on IVAs to see if this type of repayment plan can sever their reliance on plastic.
Many of those who have kept up a comfortable lifestyle by using credit cards may be worried about speaking out and asking for debt help.
But undertaking an IVA can remain a private matter and as long as repayments are kept up with, there is no reason why assets such as a home should be taken in order to repay creditors.
"If you are funding everyday items such as petrol or food and still paying for it long after the product has been used you should seriously consider stopping," advises Peter Harrison, credit cards expert at moneysupermarket.com.
By Mark Waterman
- 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 help Brits losing control of repayments
