Wednesday 19th of January 2011
An increasing number of family members in the UK may find themselves considering asking individual voluntary arrangement questions in the next 12 months.
This is because new research from Aviva - collected in its Family Finances Report - has shown many households believe they are under extreme financial pressure in 2011.
The study revealed 39 per cent of those questioned think their cash is too stretched for them to take on any more financial obligations.
According to the findings, a great number of UK families are stuck in debt, worried about additional costs and unable to save money for future use.
It was shown 57 per cent of respondents feel the increasing cost of necessities over the next six months is among their greatest concerns, with 45 per cent fearful of redundancy and 39 per cent worried about unexpected expenses in this time frame.
Louise Colley, head of protection marketing at Aviva, said: "This report gives us an interesting insight into the financial issues facing modern families in the UK. Not surprisingly, in today's society, some families are struggling to make ends meet."
The study found the average mortgage debt stands at £89,018, while the normal credit card, loan or overdraft debt amounts to £5,360.
And it could be that those in a committed relationship find they are more inclined to seek IVA answers, as people in this demographic are the least likely to be free of these arrears.
Single parents were shown to be the most likely to be rid of these debts, yet these individuals admitted they spend 29 per cent of their monthly income on repayments.
Ms Colley added that while it is encouraging to see people are trying to save, "it is clear that other demands on their finances mean this amount remains below what is needed to guarantee a secure financial future".
And families could find another financial problem they encounter is underinsurance, as Direct Line recently showed £200 billion of home contents are not adequately protected.
By Neil Burton
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