Tuesday 27th of April 2010
Individual voluntary arrangements (IVAs) might be beneficial if you’re finding it difficult to repay your credit card balances and find yourself falling into a vicious cycle of debt.
This is relatively easy for plastic users to do, moneysupermarket.com suggests, saying that missing one credit card payment could cost hundreds of pounds in additional interest and leave a black mark on their credit profile.
IVAs, however, offer you the chance to put all of your unsecured debt - on financial products like credit cards and store cards - behind you and emerge out of the red after around five years.
That is, only if you are employed, owe more than £15,000 and can meet the reduced-rate monthly IVA repayments.
After that period, you may find the burden or serious debt has been lifted and you’ll think twice before picking up the plastic again.
So, asking IVA questions could help you stop going round in a circle - splashing the cash on plastic, not being able to afford the repayment, being hit with a "hefty bill" and ending up in even more debt.
By Kimberley Parsons
- 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
- Debt problems 'prompting increase in complaints'
