- Thursday, 25 June 2009Reduced minimum payments on credit cards could increase the need for people to seek a debt management solution, such as an
individual voluntary arrangement (
IVA).
The Times reported this week that some £3.5 billion is currently "stuck" on credit cards bearing interest, as consumers are not able to switch to additional zero per cent deals when their current plan expires.
Further compounding the problem, providers such as Barclaycard have reduced their minimum repayment from 2.25 per cent to 1.5 per cent for some consumers - leaving them in a state of "perpetual debt" as it will take them longer to pay back what they owe.
As the recession continues to negatively impact household finance, those who are already struggling with credit card debt could find their troubles increase in the long-term if they only make minimum payments, it claimed.
People who are experiencing debt troubles may wish to examine an IVA as an alternative to bankruptcy.
Guardian Money blogger Ivy A wrote this week that when faced with the choice, her family opted to take on an IVA because the arrangement allowed them to remain in their home.
Recent IVA News23% of first-time buyers save for five years to raise a depositWed, 04 May 2011
Brits dealing with Finance Management should shop around for car insurance Wed, 04 May 2011
Parents, including those with Finance Management, advised to start saving for children's weddingsTue, 03 May 2011
Newlyweds may be in need of Finance Management plans after overspending on weddingTue, 03 May 2011
Renting rather than buying may be an option for Brits with Finance Management Thu, 28 Apr 2011
Consumers coping with Finance Management may want to shop around for cheap energy tariffsWed, 27 Apr 2011
Increasing number of Brits turning to loans for home improvementsWed, 27 Apr 2011
Brits, including those with Finance Management plans, to spend £267 on Royal Wedding Tue, 26 Apr 2011
Equity release can be used to 'become debt-free'Tue, 26 Apr 2011
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