Wednesday 21st of October 2009
Individual voluntary arrangement (IVA) advice could be needed this festive season as 17 per cent of people plan to cover the cost of Christmas using a credit card.
Figures from Moneysupermarket.com reveal that nearly one in five Britons expects to add to their personal debt by putting Christmas purchases on plastic.
But the price comparison site also claims that as many as two-thirds (66 per cent) of consumers will be unable to save enough in the run-up to Christmas to cover their seasonal costs.
Kevin Mountford, head of banking at Moneysupermarket.com, said: "Christmas is always a difficult time of year financially and the current economic climate is not making things any easier."
For those who accumulate debts - whether planned or unexpected - taking professional debt advice could help to identify ways an IVA might help repay unaffordable debts over a fixed five-year plan, with any unpaid debts being legally written off at the end of the IVA.
IVAs can tackle unsecured loans or credit card debts that are owed to a number of different lenders, with the legal power to freeze the accumulation of further interest.
The fixed repayment schedule is based on affordability, therefore providing some peace of mind to consumers that they will be able to continue to meet their monthly repayments into the new year.
By Neil Burton
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