Friday 19th of March 2010
If you have previously relied on credit card cheques to boost your bank balance then you may now be paying the cost of not keeping on top of your finances, although asking some individual voluntary arrangement (IVA) questions may ease the burden a little.
Credit card cheques can be used to make a minimum repayment on another credit card, as well as stem the flow of money coming out of a bank account.
But financial institution MBNA has revealed that from March 31st it will no longer issue standard credit card cheques, replacement cheques and new promotional cheques.
This could remove the temptation of its customers to use them as a short-term way to get their hands on cash.
And with this temptation removed, an IVA could then help them clear their credit card debt balances to sever their tie to credit.
If you do not use MBNA but want to sort your unsecured debt out then undertaking an IVA could see you debt-free within around five years, leaving you to make a fresh financial start.
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 help until sky-high interest rates stop
