Thursday 22nd of April 2010
Asking individual voluntary arrangement (IVA) questions as soon as possible could be a wise choice if you’re planning on starting to chip away at your unsecured debts.
IVAs provide you with the opportunity to become totally debt-free after five years - if you meet the monthly repayments and owe more than £15,000 on credit cards or personal loans.
And this could become increasingly popular among Brits with David Kuo, director of the Motley Fool, suggesting growing interest rates could mean now is a good time to repay debts.
If you’re paying interest above what you’re getting from savings, "paying down debt is the most sensible thing to do right now", he says.
IVAs also freeze interest rates on the money you owe, while debts are merged into one, potentially making it easier to meet the monthly payment and stay in full control of your finances.
And with a bit of discipline and care, you could be out of the red and in a position to start saving later down the line.
By Mark Waterman
- 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
- Demand for IVA advice to increase?
