Thursday 1st of October 2009
The average British household pays out £2,645 in interest on their debt each year, according to October’s Credit Action Report - a situation that could be improved with the use of an individual voluntary arrangement (IVA).
The UK’s spiralling debt means significant interest payments may now be common to many people.
However, an IVA could be the ideal way to combat this as it freezes the interest on unsecured debt.
Every day in the UK, £181 million is spent on interest payments, making the annual total more than £66 billion.
IVAs can also structure unsecured debt repayments so that they are easier to manage, in the process further reducing your monthly outgoings.
Interest problems are not restricted to households though; the government spends £74 million every day to meet interest requirements on Britain’s £805 billion debt.
By Hayley Jones
- 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 questions may offer breathing space to Brits worried about job security
