Saturday 24th of April 2010
Individual voluntary arrangement (IVA) answers may make some Brits in debt think they have found the perfect solution to their money troubles.
They can help clear unsecured debts of more than £15,000 and freeze the interest on personal loans, credit and store cards.
But one financial expert has reminded people insolvency is never an easy journey to take.
Chris Tapp, director of Credit Action, explains an IVA "works through a number of years and you do have to keep making payments towards your debt, at the end of which the rest is written off. You have to be disciplined to do that".
So it will require Brits who usually reach for the plastic in times of need to start budgeting and get into other good financial habits.
Mr Tapp adds while IVAs can help many people, the practicalities of going through the process are not easy.
However, if debts appear to be spiralling out of control, IVAs could prevent the situation worsening, after which the only way out could be bankruptcy.
By Mark Waterman
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- 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
- Budget 'more likely to add to than solve' debt management issues
