Monday 23rd of November 2009
Bad credit ratings do not leave a mark against consumers for the rest of their lives, although obtaining individual voluntary arrangement (IVA) advice could stop negative ratings piling up.
Despite what some Britons think, bad credit ratings will stay on a consumer’s file for around six years, lovemoney.com asserts.
One way to improve credit ratings could be to enter into an IVA agreement - which sets individuals on the path to repaying their unsecured debt. IVAs also stay on record for approximately six years, but once this is over, credit ratings can be built up.
While repaying debt under an IVA may take a while, once the agreement is completed, some people could decide not to rack up high debts again and undo their good work.
The website notes that if you are faced with high debts, "you’re probably feeling vulnerable, scared and extremely worried about what the future holds. And you might be unsure where to turn and what to do to get yourself out of this situation".
However, turning to IVA advice could reassure Britons that, for example, their home could be protected, while unlike bankruptcy, an IVA is kept as private financial matter.
By Rachel Powell
- 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
- IVAs could help you clear your 'damaging credit card debt'
