Friday 30th of October 2009
Individual voluntary arrangement (IVA) advice could be of use to some of the many Britons still continuing their "love affair" with credit cards.
Despite the recession, demand for credit remains stable - although there is less of it available than there was one year ago, according to Credit Action.
However, the amount of money dished out in loans during September was £700 million more than in the previous month.
Chris Tapp, a director of Credit Action, said: "A lot of people are reliant upon being able to borrow on their credit cards to smooth out peaks and troughs in their income and in many unfortunate situations they rely on cards simply to buy essential living costs."
Mr Tapp believes the UK has not seen the end of an obsession with paying with plastic.
And that could lead increasing numbers of Britons into serious debt problems - problems that could be solved by an IVA.
IVAs tackle unsecured debts by seeking to freeze interest rates and renegotiate payment schedules - which could make one perfect for credit card-crazed consumers.
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
- IVAs could be the best solution for lenders and borrowers
