Monday 26th of April 2010
Individual voluntary arrangement (IVA) answers could be the first port of call if a lack of cash is causing you to turn to plastic.
According to Asda’s latest income tracker, discretionary income - that is, the amount of salary left over for spending after essentials, such as food, clothing and shelter, have been taken care of - declined by 1.3 per cent in March compared to the year before.
This could mean that growing numbers of people are having to rely on credit cards and personal loans to fill the income void and fund other purchases.
IVAs, however, may help plastic-dependent Brits who find their unsecured debts are spiralling because their pay cheques simply don’t go far enough.
They can help you out of the red over a period of around five years if you owe more than £15,000 on credit cards and personal loans and can meet the reduced-rate monthly repayments.
IVAs also freeze interest on the money you owe, which could make it easier to throw off the shackles of debt.
Andy Bond, Asda president and chief executive officer, comments: "With the rising costs of daily essentials such as food and petrol having a real impact on monthly budgets, families are still finding it extremely tough out there."
By Chris King
- 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 'are a good idea for those in debt'
