Friday 4th of June 2010
Individual voluntary arrangement (IVA) FAQs may offer cash-strapped Britons enough information to help them out of their debt problems, if they have been caused by store cards.
According to Which? they are one of the top ten most useless financial products for consumers, because of their high interest rates.
The firm adds it could cost you an additional £300 every year by maintaining an average balance of £1,000 at 29.9 per cent.
FAQs on IVAs may, therefore, provide you with support if who have fallen foul of the plastic product.
They could show you how IVAs merge the interest on all of your unsecured debts worth more than £15,000, potentially making it easier to manage your money and whittle down the cash you owe.
And they might have you debt-free after five years, although you should be aware the form of insolvency requires a lot of hard work.
"Store cards are usually best avoided," comments Martin Bamford, chartered financial planner and managing director at Informed Choice.
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 support Brits who borrow like Michael Winner
