Friday 20th of November 2009
An individual voluntary arrangement (IVA) could be useful for credit card users who have failed to keep on top of their debts.
Jessica Brown, writing for moneysupermarket.com, has advised people who pay on plastic to always consider how they will return what they owe and to avoid in-store credit - as tempting as it may be.
The financial expert also suggests that those with money problems leave their credit cards at home and set weekly, monthly and annual budgets for all major expenses.
She writes: "It is also a good idea to say no to store cards, which generally charge very high interest rates that will often more than cancel out the attractive discounts you get for taking them out."
An IVA could be a good recovery plan for people in financial distress due to unpaid unsecured loans - such as credit card bills and store cards - stacking up.
It allows debtors to negotiate with creditors to set new, more affordable repayment amounts over a fixed period, which could help to drive down credit card debts.
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
- IVA to help those 'juggling' their debts?
