Tuesday 29th of September 2009
Britons perilously close to going into the red could turn to a debt management plan to help them out of financial difficulty.
Chancellor Alistair Darling yesterday (September 28) warned that middle-income families may be most affected by a tax rise.
A debt management plan, produced by a financial expert, prioritises certain debts and lengthens repayment periods, making debts more manageable.
This could prove useful to households which suddenly find their coffers in the red due to an income tax hike.
The government recently imposed a 50 per cent tax rate on top earners and it is now feared the boundaries of this could be extended to engulf millions more workers.
This may push many to the brink of financial peril.
Debt management plans can also be used to reduce interest rates, removing the common problem of having to make large payments just to cover the interest on a debt, which could be pushed to the backburner should income tax eat more of a household’s income.
