Friday 7th of May 2010
Individual voluntary arrangements (IVAs) might offer a helping hand to those who have ended up in serious amounts of debt because of store cards.
And there could be plenty of people in a situation like this, following comments from Martin Bamford, chartered financial planner and managing director at Informed Choice.
He says: "Store cards are usually best avoided. They are typically more expensive than credit cards, come with more small print and punishing penalties and restrict your purchases to one store or chain of stores."
But it’s extremely tempting to rely on plastic to help you get by when cash is hard to come by, which is why seeking IVA answers may benefit many.
IVAs offer you the chance to cut your unsecured debts on store and credit cards - provided they are worth more than £15,000 - so long as you meet the reduced-rate monthly repayments.
Mr Bamford adds that the "golden rule" of shopping is never spend cash you don’t actually have.
IVAs could ensure you get out of this habit - and gain a renewed grip on your once uncontrollable finances - before you end up deeper in the red.
By Hayley Powell
- 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
- Information on IVAs may help see off soaring interest rates
