Tuesday 17th of August 2010
Britons have been warned of the potentially high cost of short-term borrowing.
Individual voluntary arrangement (IVA) information could show those who are relying on payday loans and other forms of credit a way to live within their means.
And now may be the ideal time to start focusing on managing finances, as Consumer Focus notes the number of people taking out payday loans in the UK has quadrupled since 2006.
The organisation's figures show interest charges typically amount to between £13 and £18 for every £100, although in some cases this rises to £30.
Financial services specialist Marie Burton comments: "Such expensive rates can leave consumers who defer payments, or take out repeat loans, caught in a debt trap."
However, if you owe more than £15,000 an IVA could allow you to repay your borrowing over a period of five years, although a dedicated effort will be required.
By Neil Burton
- 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
- Do you use credit for everyday items? You could have a debt problem
