Wednesday 12th of May 2010
Individual voluntary arrangements (IVAs) could offer a way out of the red to those of you who are struggling to get out of your overdrafts.
IVAs may help you cut your unsecured debts - that is, money owed on credit cards and personal loans - worth more than £15,000 after around five years, potentially helping you become completely debt-free after the hard work and discipline put in over that period of time.
And asking IVA questions could offer a boost to those of you living beyond your means, if figures from Moneyfacts are anything to go by.
That’s because the firm states overdraft rates are at their highest levels in a decade - at an average of 14.22 per cent.
Although IVAs don’t assist with clearing overdrafts, it doesn’t mean they can’t offer a helping hand.
They can help wipe out your credit card debt, which means you may not have to constantly dip into your overdraft to help meet your monthly repayments.
And this may even lead to a renewed ability to save for a rainy day - important in this uncertain economic climate.
By Neil Burton
- 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
- An IVA could help you meet your dream of paying off your mortgage
