Thursday 11th of February 2010
A couple who have retired have asked for debt help after they revealed they are struggling to keep up with their credit card repayments, something which an individual voluntary arrangement (IVA) could help with.
The Independent reported that after using their savings to clear their mortgage, the pensioners turned to credit cards to help them meet monthly costs. But this has left them struggling with the bills.
Britons who find themselves without a healthy disposable income but climbing credit card debts may find an IVA is one answer to get out of the red.
IVAs can merge different credit card balances together, meaning people only need to make one, reduced interest rate, monthly repayment.
The couple added that they do not want to sell their home to help cover their debts. Indeed, an IVA can prevent the need for a home having to be sold as long as the repayments are kept up with.
Writing in the newspaper, Kevin Boon, from the Consumer Credit Counselling Service, said one option was to release equity.
"Releasing the equity from your home is a big decision to make. It should only be considered once all other options have been explored and after a financial assessment," he stated.
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
- Need for IVA help growing as "more people" are in difficulty
