Thursday 15th of April 2010
Couples who are hoping to start a family and move to a bigger house in the future, but are worried about the state of their finances, may find themselves in need of individual voluntary arrangement (IVA) answers.
If partners have large amounts of unsecured debt, they could well be concerned about how they are going to be able to afford to move up the property ladder.
IVAs, however, could increase their choices by helping them remove credit card and personal loan debt over a period of five years.
Which may interest a large number of Brits given that the cost of buying a home is becoming more expensive, figures suggest.
New Findaproperty.com statistics show the average property price to buy has gone up by 2.3 per cent in the last year - to £213,475.
In addition, the data reveals that first-time buyers currently have to shell out around one per cent more on a house than in 2009.
The fact is that that couples in debt may want to start a family, but can’t begin to contemplate everything that goes with - like a bigger home - until their debts are cleared.
So how can families who are eager to have more kids in the future ensure they have a place big enough to call home without letting their unsecured debts get in the way?
Well, IVAs freeze interest rates on credit card and personal loan balances worth more than a combined total of £15,000 and merge repayments into one manageable monthly outlay.
And embarking on an IVA could offer both breathing space and the opportunity to start saving cash to boost the coffers and put towards the cost of a deposit, which may not have been previously possible.
- 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 demand could grow as debt problems increase
