Friday 16th of April 2010
The prospect of Brits increasingly using plastic to buy everyday items could result in more people asking individual voluntary arrangement (IVA) questions.
We all know how easy it is to stick a few items on our credit cards when we head down to the shops and we’re in a bit of a rush - but what begins as convenient could end up extremely inconvenient when the unsecured debts start to build up.
And this is something an IVA - which cuts down debts on credit cards and personal loans worth more than £15,000 over a period of five years - could help growing numbers of people with.
Because, according to Neil Munroe, spokesperson for Equifax, the use of cash is declining significantly "as the generation that was used to cash gets older and new generations come in with new technology".
IVAs also freeze interest on your credit card repayments, so you could find asking IVA questions sooner rather than later helps you kick the plastic habit and regain control of your finances.
After all, credit cards do not help you budget if you don’t treat them as real money and end up with a variety of different lenders to pay.
By Ashley Littley
- 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
- Could an IVA help you turn your back on lenders?
