Wednesday 12th of August 2009
Many articles about debt management in the media advise borrowers to contact their lender if they encounter any difficulty in meeting their repayments.
However, alternatives such as independent IVA advice could prove a wiser option, in light of figures from moneysupermarket.com.
The comparison website reveals that some lenders charge for providing debt management advice directly - at a cost of up to £100.
With this penalty only likely to be faced by those who are taking steps to inform their lender of their difficulty and to resolve the problem, the site adds that it could be seen as "the most callous charge of all".
However, there are a plethora of other fees applied to accounts in arrears - which moneysupermarket.com notes vary from lender to lender.
In previous figures, moneysupermarket.com recently noted that more than a quarter (27 per cent) of Britons have taken on more debt over the past year, which could have raised their need for IVA advice in turn.
By Mark Waterman
- 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 FAQs could offer answers to those still facing cutbacks
