Wednesday 5th of May 2010
Individual voluntary arrangements (IVAs) may become more popular among plastic users who constantly need to borrow money to pay their way.
And according to figures from the Bank of England, the number of people like this could have risen over the last few months.
Data shows that credit card lending grew by some £200 million in March compared to the previous month.
If you find it difficult to stay within your budgets and end up in serious amounts of debt as a result, seeking IVA answers could be a wise move.
IVAs may provide you with the chance to emerge debt-free after five years, if you owe more than £15,000 on credit and store cards.
And you could find they also give you the opportunity to avoid pitfalls that often come with bankruptcy, such as repossession of the family home and being overlooked for positions in certain sectors.
However, you should keep in mind that IVAs do take a lot of hard work and discipline.
Trying to make ends meet by relying on money that isn’t technically yours is tempting, but also dangerous.
But asking IVA questions could help you put a stop to your bad habits before they spiral out of control.
By Ashley Littley
- 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 answers may help reduce 'unmanageable debt'
