Mr. Craig Cummins
Craig has been a member since Tuesday, 8th of February 2011 and has so far written 6 articles. He lives in England.
Latest articles by Craig
- Will your HP agreement be affected if you enter into an IVA?
- Store Cards - what the retailers don't want you to know
- 20% deposit for 1st time buyers dampens housing recovery
- IVAs - the final step before Bankruptcy
- Juggling credit and store cards
- HP - the cons
Whether or not your HP agreement will be affected if you enter into an IVA will depend largely on the amount og the HP and what kind of asset you've purchased with the agreement. For example, if your HP agreement is for £5,000 over 3 years and this has enabled you to purchase a 2nd hand family...
Store cards are fundamentally a credit card but attached to a specific shop or chain of shops. Typically they will attract a similar interest rate as for credit cards and should only be considered as a short-term borrowing requirement due to the high interest rates charged for this form of credit.
Due to the credit crunch, lenders (banks, building societies, etc...) are now requiring people to put down large deposits to secure mortgages. Typically, these are in the region of 20%-25% of the total sum required. To put that into perspective, for an average priced house of £160,000 this...
IVA's are generally considered to be the last chance for anyone to repay a proportion of their debt as opposed to going Bankrupt. It enables them to protect their assets (e.g. their home), which would not be the case under Bankruptcy.
People typically start to get into debt by building up a few thousand pounds worth of debt on a credit card.
Then, when they've reached their credit limit, they apply for another credit card with another provider; and/or they may take out a store card as well.
People can end up having many credit &...
One of the major cons of HP agreements are that they are, fundamentally, a credit agreement and, as such, you will have to pay a not insignificant amount in interest for the benefit of having the agreement.
