Thursday 2nd of September 2010
Seeking individual voluntary arrangement (IVA) answers may be a wise choice for people want to start the process of whittling away their significant unsecured debts.
According to recent figures from Credit Action, total lending rose in July by £300 million, with credit on the up by £200 million.
In addition, the charity notes the Office for Budget Responsibility predicts household debt could hit £1,823 billion by the end of 2015.
Answers on IVAs may, though, offer plenty of useful information to those of you who have serious money troubles but are ready to get back in control of your finances.
The method is only available for those in a full-time job, who owe over £15,00 to three or more creditors and have the discipline to meet a combined, reduced-rate repayment every month for around five years.
Commenting on the Credit Action data, Ed Bowsher, head of consumer finance at lovemoney.com, says: "I think the financial crisis has changed some peoples' attitude to debt. They now realise that debt can be a huge albatross and are trying to pay their loans."
By Rachel Powell
- 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
- Information on IVAs may give workers a way out of their debt problems
