Over 55s IVAs on the increase
Credit card debt among those over the age of 55 has increased, leading more and more people over the age of 55 to turn to IVAs to clear their debts.
After spending heavily during the housing boom of the late nineties and early 2000s, many people built up substantial levels of credit card debt, as lenders offered more and more credit to those who were reaching their borrowing limits.
A report in Scotland has revealed that over half of those over 55 still owe money on their credit cards, and with credit card interest rates so high, many people struggle to make the interest payments, let alone actually paying off any of the money they have borrowed.
With inflation taking off, many are finding that the cost of living is meaning they can afford to pay back less and less of their credit card bills, pushing them further into debt, and for those passing the £15,000 mark, an IVA could be their ideal solution.
The IVA allows those who owe more than £15,000 to more than one creditor to apply to the courts to have their debt interest frozen at 0%, and to be allowed to pay back the money over a five-year spell, at an affordable monthly repayment. Over 75% of creditors must agree to the scheme for it to become live, but any debt not paid off after five years will be wiped clear.
With those over 55 also having to worry about paying for their retirement, an IVA now could give them the fresh start they need before it’s too late and could help them avoid a retirement of poverty.
IVAs are seen as an alternative to bankruptcy, and those over £15,000 in debt are generally only falling further into debt. An Iva could help you today.