Friday 28th of May 2010
Individual voluntary arrangement (IVA) FAQs could offer you all the information you need if you’re planning on cutting back on your credit card use.
According to figures from moneysupermarket.com, millions of Britons are putting their personal finances in jeopardy by using plastic to pay for everything from household bills to everyday shopping.
And this could lead to a serious debt problem that ensures their hard-earned income is spent on repaying credit card balances, rather than the essentials in life.
IVA FAQs, however, may be useful resources if you’re stuck in a similar mess.
They offer plastic addicts a chance to chip away at the money they owe - if it’s worth £15,000 or more.
And if your problem is so severe that you’re looking into the possibility of insolvency, you could find IVAs are a more suitable option to bankruptcy.
That’s because they protect the equity on your family home and may not block your route into certain careers, as is often the case with bankruptcy.
"Consumers who are turning to credit cards to fund basic household bills on a regular basis should be hearing alarm bells," Kevin Mountford, head of banking at the website, says.
By Hayley Jones
- 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
- Trying to pay back your personal loans? IVA answers may offer a helping hand
