Wednesday 3rd of November 2010
People who have been caught up in the debt culture of the last ten years may seek individual voluntary arrangement (IVA) answers in order to help eradicate their arrears and start saving into an emergency fund.
Jonathan Davis, economist and wealth manager at Jonathan Davis Wealth Management, said Brits should be looking to save in times of economic prosperity rather than in a period of austerity.
He added his organisation has always advised its clients to keep six months' worth of finance to one side as this will provide a safety net should short-term difficulties arise.
Mr Davis stated banks' refusal to lend to the extremes that were witnessed prior to the credit crunch will mean there is no return to the culture of individuals freely spending borrowed finance.
Last week, Mintel revealed the global recession has resulted in people having a good sense of the impact an economic collapse can have on them and this has led to an emphasis being placed on putting funds away for the future as opposed to being spent in the short term.
By Chris King
