Monday 24th of May 2010
Individual voluntary arrangement (IVA) answers might benefit Britons whose reliance on credit is so serious they find it impossible to get out of the red.
The Office of Fair Trading recently joined a campaign to combat loan sharks - illegal money lenders that typically charge extortionate rates of interest and harass people who fall behind with their repayments.
Many who have serious money troubles turn to these unlicensed creditors for quick cash in times of vulnerability, according to Jacqui Kennedy, director of regulatory services at Birmingham City Council.
However, if you’re overly reliant on credit and have even considered turning to one of these loan sharks in a bid to stay afloat, IVA answers may be beneficial and offer a way out of your vicious cycle of borrowing.
IVAs are only available for those who owe more than £15,000 on unsecured financial products and have the means - and discipline - to meet the reduced-rate repayments.
But they may show you the dangers of dependence on personal loans before your problem spirals out of control.
And seeking answers on IVAs could also demonstrate that it is in fact possible to shore up your finances without having to resort to extremely desperate measures.
By Ashley Littley
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