Wednesday 2nd of December 2009
You owe around £30,000 on average, including mortgages, a new report by Credit Action reveals.
This amount represents 133 per cent of your average earnings and could highlight how individual voluntary arrangement (IVA) help may be required so you can start cutting this debt load down.
Households which have some form of unsecured loan carry around £21,210 of debt on their shoulders, although IVAs can be used to reduce unsecured borrowings such as loans and credit cards.
IVAs can also freeze the interest on such debt, which could be ideal as £180 million is paid by you and other Britons in the UK every day in interest repayments, the Credit Action figures note.
And it seems that many of you are still reliant on plastic, as on a typical day, 21.9 million plastic card transactions will be made, adding up to a total £1.05 billion.
If you have a number of different credit cards you rely upon for everyday expenses, an IVA can merge these balances together. Rather than trying to cover the cost of a variety of debts with different interest rates, an IVA can make these into one monthly more manageable repayment.
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 repay post-Christmas debt
