Friday 30th of April 2010
Individual voluntary arrangements (IVAs) could be beneficial for British big spenders who are overly reliant on their credit cards.
And according to figures from PayPal, there could be a jump in the number of people hitting the shops with plastic in hand, as ten per cent of UK shoppers say they’re planning on increasing their spending over the next six months.
IVAs may be more of a sensible choice than splashing the cash for some, though, if their shopping habit has already led to big unsecured debts being accrued on credit and store cards.
IVAs offer consumers the chance to chip away at money they owe - if totals more than £15,000 - over a period of five years and emerge from the red if they can meet the reduced-rate monthly repayments.
Carl Scheible, managing director of PayPal UK, says: "A sense of creeping optimism is growing amongst UK shoppers."
However, if you want to make sure this optimism doesn’t turn into recklessness and uncontrollable debts, seeking IVA answers could be a wise choice.
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
- IVA could offer better repayment plan than credit card companies
