Tuesday 11th of May 2010
Asking individual voluntary arrangement (IVA) questions could benefit the scores of Brits who are currently unable to lift the burden of expensive unsecured debts.
Figures from the Insolvency Service show that out of the 35,682 personal insolvencies in the first three months of the year in England and Wales, 11,782 were IVAs.
And their rise in popularity could be down to the benefits they provide people who are strapped for cash - although taking this route should be carefully considered.
According to Chris Tapp, director of Credit Action, debts on credit cards and loans "have been causing real difficulty because they can seem to be quite expensive".
IVAs, however, offer Brits the chance to cut unsecured debts over £15,000 on financial products like this, giving them a chance to pull themselves out of the red after a period of around five years.
While IVAs are hard work, they also freeze the interest on the money you owe and merge all of your repayments into one reduced-rate monthly outlay.
As a result, you could find your prolonged discipline and effort is rewarded by a renewed control over your finances, as well as swelling coffers with which to keep your head safely above water.
By Neil Burton
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- 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 FAQs to assist Britons unable to pay the bills?
