Monday 1st of June 2009
Seeking debt advice could help borrowers to get their finances back on track, it has been stated.
According to moneysupermarket.com, those who are unable to repay what they owe should consider seeking IVA help and other solutions.
The price comparison site explained that consumers who have debt problems are likely to struggle to obtain further credit - even for consolidation purposes - and that a debt management plan or individual voluntary arrangement (IVA) could allow more affordable repayments to be made.
"If your debts have spiralled and realistically there is no way you’ll be able to repay them, an IVA may be the best course of action," it noted.
Last week, first direct urged homeowners to overpay on their mortgages in order to avoid future debt worries.
The HSBC subsidiary suggested that taking advantage of low interest rates will significantly reduce the amount of time it takes to get out of debt.
- 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 ease pressure on cash-strapped consumers
