Wednesday 9th of September 2009
Britons who keep topping up their debt because of bank charges may get some financial relief.
While an individual voluntary arrangement (IVA) can help people tackle their unsecured debt such as personal loans and credit cards, they may also find that they need to fork out less for their bank accounts.
Royal Bank of Scotland and NatWest have announced that from October 1st, they will reduce the charge for a bounced debit payment or cheque from £38 to £5, while overdraft charges will also be reduced.
"However, it won’t mean the end of the discussion on bank charges by a long way because you’ve got a situation now where different banks have completely different charging structures in place," Andrew Hagger, a spokesperson from Moneynet.co.uk, states.
Even if bank charges remain complex, households which undertake an IVA could find that their unsecured debt commitments are merged into a single, monthly, more manageable repayment, which could simplify finances.
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
- IVAs could help Brits over the deposit hurdle
