Thursday 25th of February 2010
Individual voluntary arrangement (IVA) answers may be required by those of you who have taken out a number of store cards without realising the full terms and conditions.
According to R3, shoppers often sign up for store cards on the advice of a shop assistant who is, more often than not, financially untrained.
Store cards usually come with sky-high interest rates, something an IVA can help with.
IVAs freeze the interest rates on store cards and merge them into one, more controllable, monthly repayment.
Two-thirds of R3 members have experienced insolvency cases where consumers got their hands on a store card without knowing the potential consequences.
"Offering store credit at the point of sale means that many vulnerable consumers do not grasp that they are entering into a legally binding contract. Store cards must be handled just like any other credit card," says R3 president Peter Sargent.
But you may have got yourself into serious store card debt as you do not treat plastic as real money. In such a scenario, an IVA may prove to be of assistance.
By Kim Parsons
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- 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
- IVA FAQs may offer priceless information to struggling self-employed
