Monday 7th of February 2011
Individual voluntary arrangement (IVA) questions could be on the lips of many people who are already deep in debt and finding costly credit card bills are exacerbating the problem.
Managing director at moneymaxim.co.uk Mark Bower said it is important adults in the UK attempt to ensure the payments run up on their plastic start to decrease on a month-by-month basis.
The industry figure noted moving from a period of spending and borrowing to a time of saving is likely to take a while.
He explained making these changes can result in surplus cash being placed into a savings pot.
"For most this won't happen overnight, but over time [this] can help to rebalance both personal budgets and savings pots for the future," Mr Bower added.
His comments come after recent Insolvency Service figures showed there were 25,179 debt relief orders in 2010, while the number of IVAs rose to 50,716.
By Chris King
