Tuesday 24th of August 2010
Individual voluntary arrangement (IVA) FAQs may be beneficial to those of you who are looking for a way out of your debt woe but can't afford the repayments on your deficit.
According to figures from the Markit/YouGov Household Finance Index, close to 30 per cent of families in the UK have reported a dip in their finances this month, while just six per cent noted an improvement.
Commenting on the news, Ed Bowsher, head of consumer finance at lovemoney.com, says it may take years for some households to get their bank balance back on track, adding this is largely because of too many people borrowing when market conditions were at their peak a few years ago.
An IVA may, however, help remove your debt burden - if you owe more than £15,000 on unsecured financial products.
The measure could have you out of the red after around five years and also ensure your home is not sold as an asset - which might be the case with bankruptcy - as it protects the equity on your property.
Mr Bowsher adds: "[People] will now be anxious to pay down as much debt as possible. As a result, they won't be spending so much on the high street."
By Ashley Littley
- 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 help Britons who rely on credit cards
