Monday 19th of April 2010
If the prospect of homeownership is appealing, but currently impossible because of high levels of unsecured debts, asking individual voluntary arrangement (IVA) questions might set the wheels in motion and help you on to the property ladder.
At the moment property hunters face a serious challenge in finding a deposit for a new home, according to Moneynet.co.uk’s Andrew Hagger.
In fact, the average first-time buyer today needs £3,700 more for their one-off payment than they would have done in the final three months of 2007, his analysis shows.
And this is especially difficult to get their hands on if they’ve got serious unsecured debts to pay back.
However, IVAs could help people fill their coffers by helping to wipe debts on credit cards and personal loans worth more than £15,000.
And, providing they meet their monthly repayments, IVAs could have them debt-free in five years and ready to start saving for their ideal home.
Mr Hagger comments: "If you can make the effort to save the sum required, your efforts will be rewarded with a place of your own."
By Rachel Powell
- 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
- Credit card customers 'need to repay more than the minimum'
