Monday 25th of January 2010
People in serious debt and who need help to get out of the red may decide to get some answers on individual voluntary arrangements (IVA), after one newspaper reveals the long wait borrowers could face getting free advice.
The Times reports the case of 73-year-old Fred McCarthy, from Gloucester, who claims to have had to wait for long periods to receive information.
According to the newspaper, this could reflect the strain placed on Citizens Advice in England and Wales, which has to deal with almost 10,000 new debt problems every day, although entering into an IVA could be the answer for people who want to start clearing their debts.
Rather than letting unsecured debts mount up, undertaking an IVA can see the interest on such balances frozen, while debt from a variety of lenders can be merged together into one, monthly and more affordable repayment.
"The months were rolling by and I was worried that my creditors were beginning to get threatening. My wife imagined bailiffs knocking on the door," Mr McCarthy explains about his concerns of not dealing with his debt quickly enough.
Another benefit of an IVA is that no further legal action can be taken by creditors, while they are also advised to only contact borrowers through the specialist IVA negotiator in charge of the case.
By Kim Parsons
- 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
- Cutting down on spending and ready to reduce debts? IVA answers may help
