Tuesday 1st of December 2009
If you have recently been turned down for unsecured credit such as personal loans and credit cards, it could be a sign that you need individual voluntary arrangement (IVA) advice.
According to the latest Credit Action report, 25,250 applications for consumer credit were turned down every day last month, many cases of which will be because households are already too much in debt and lenders will not want to take on the risk of missed repayments in light of the economic downturn.
Missing interest repayments could be an increasing concern for you. The statistics reveal that the typical interest paid out every year by households stands at £2,627.
An IVA can help tackle this problem. Through an IVA, interest rates on unsecured debt are frozen, giving you breathing space to catch up with repayments, rather than seeing any disposable income eaten up by climbing interest.
You will not be the only one seeking IVA help. Every day, 1,000 people look to put in place a formal debt repayment plan, which could include IVAs.
The Citizens Advice Bureau has also revealed that it sees 9,300 new debt problems every day.
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
- Seeking IVA advice now could prepare for the future
