Monday 16th of August 2010
Consumers facing rising costs for unsecured financial products could find that individual voluntary arrangement (IVA) answers offer a way out of difficulty.
Research by moneysupermarket.com has indicated interest rates for personal loans worth less than £5,000 have reached a ten-year high.
And many Britons may be struggling to cope with their debts when these charges are added to their various borrowings.
However, if you owe more than £15,000 to at least three creditors an IVA could freeze the interest and enable you to repay what you owe over a period of five years.
Hard work and dedication is required, but it can allow you to avoid bankruptcy and start fresh, showing you a way to live within your means without relying on credit.
Tim Moss, head of loans and debt at moneysupermarket.com, notes many Brits taking out personal loans at present are "undoubtedly [paying] through the nose", as banks have been increasing costs.
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
- IVA questions may be on the increase in England and Wales
