With 2008 set to be a bumper year for insolvency and those opting for an IVA, many experts are warning the public of the hidden dangers of credit cards so as to avoid falling into debt in the first place.
The UK is increasingly becoming a country built on credit. Lamentably, this credit creates an abundance of unsecured debt and hundreds of thousands of people will experience bankruptcy as a result. However, many more are able to stave off the threat of being declared insolvent or bankrupt by opting for an IVA. These are legally binding contracts that are generally considered the primary means by which to satisfy creditors. Many are laying the blame squarely at the door of the lack of transparency of credit agreements when it comes to the increase in bad debt across the UK.
IVA – What You Need To Know About Your Credit Cards
The credit crunch has undoubtedly hit the pocket hard of credit card holders across the UK but it's the hidden charges that may have the most profound effect on our nation's wallets. Banks are increasingly adding hidden charges to their credit cards and hiding them deep within the small print so as to avoid detection. This additional difficulty in paying debts will lead to an increase in those seeking an IVA when they are no longer capable of keeping up repayments. Just some of the areas that are being affected by hidden charges include:
• Balance Transfers
• Foreign Usage
• Cash Withdrawals
• Increased Purchase Rates
Whilst these changes are likely to be small, they will certainly be noticeable when it comes to paying your bill off. As a result of these surreptitious changes, many cardholders will fall deeper into debt and resort to an IVA to avoid bankruptcy. The reason an IVA is an attractive proposition to those in debt is that monthly repayments will be based on an affordable disposable income. Once the final payment on the IVA is paid, the debt is legally written off and many IVA arrangements can write off up to 65% of the debt that is owed.
Talk To Varden Nuttall About IVA
Varden Nuttall has been established for over 15 years and is dedicated to helping people in financial difficulty find a debt management solution through an Individual Voluntary Arrangement (IVA). Employing 90 people, including trained and skilled IVA administrators, we are one of the largest IVA companies in the UK and handle over 3% of all IVA applications. To find out more about the company, or to make an appointment to talk about putting an IVA in place, call us today on 0800 031 9802 or fill in our online enquiry form.