*This post is written for thriftyscot.co.uk*
There is new shopping mall opening in town. This time most of the outlets are branded clothing and designers materials which I’m sure will tempt many people to actually buy and swipe their credit cards to pay for the merchandise. And this in return spells debt, more accumulating credit card debts.
It’s not enough that the living cost is hiking up tremendously over the years, the retail industries are wrecking it further with their heavy advertisement and pressure for the public to go out and spend. If you are one of the unlucky few who could not resist the temptation to shop till all your cash drop, it’s time that you get debt help.
Do you know that if you have been in the situation whereby you can’t even pay all the minimum repayment amount of your debts to all the creditors, you can go for IVA. The IVA – Individual Voluntary Arrangement is the common legal route for people in the UK who have more than £15,000 of an unsecured debt that they cannot afford to pay. What it can do is that you will be given 5 years to clear up all the debt with the amount you can afford to meet every month, provided all the creditors vote to give you the IVA path to debt-free life. During that 60 months time, no interest will be charged so in the end it will benefit you as the person in debt. In a way it could reduce your debt up to 70% of the actual debt amount.
Another common way to save on interest imposed on the accumulating balance will be by taking consolidation loan. Instead of paying several small amount of debts repayment to different creditors, you take one big loan to pay off all and you just pay one amount to the consolidation loan creditor. However be warned that before you get a consolidation loan, check out the repayment terms offered and any hidden fees that may be involved.
Guess I will putting off my plan to visit the new mall. I have to practice what I preach, right..huhu!
