Wednesday 26th of May 2010
Individual voluntary arrangements (IVAs) could offer a helping hand to tenants who are struggling to juggle both the cost of accommodation and money troubles.
According to figures from the Royal Institution of Chartered Surveyors (Rics), rent prices have increased steadily over the last three months, as a result of a lack of supply of properties.
And this could leave debt-riddled Britons seeking IVA questions, if they suddenly have to shell out more on their house or flat at the same time as trying to pay off the money they owe on credit cards and personal loans.
IVAs can be taken out by those with unsecured debts worth over £15,000, as long as they are employed and have the means to meet the reduced-rate monthly repayments they demand.
They also freeze the interest on all of the individual’s debts, potentially putting the borrower back in full control of their finances and with enough spare cash to set aside for increased rent.
This could be especially beneficial, given that Rics spokesman Jeremy Leaf states: "Rents are set to move higher in the coming months."
By Ashley Littley
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- 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
- Pensions suffer as debts mount, but IVA advice may help
