Tuesday 2nd of November 2010
There may be a rise in the number of people seeking individual voluntary arrangement (IVA) answers over the coming years, after research revealed a third of parents believe their children will be in a worse position than they are when trying to balance their finances.
Published by M&S Money, the survey showed that a quarter of adults believe their kids will be more likely to find themselves in debt, despite the cautious nature of the economic environment the country is now in.
In addition, 19 per cent of those questioned feel a lack of knowledge concerning finances - partly as a result of limited practical guidance being offered in schools - will leave their children unable to deal with their money situation.
Some parents believe they can help their offspring to safeguard against future debt problems, with a third stating relaying their own experience can benefit their children when they come to make their own financial decisions.
For those who do find themselves deep in the red, IVA answers could provide individuals with a route out of economic hardship.
The service is only available to the full-time employed but does offer those who choose to undertake the course, which typically takes five years, the chance to relieve their debt burden.
Individuals deciding to commit to an IVA may be comforted by the knowledge the details of the arrangement are not required to be published in newspapers, as is the case with bankruptcies.
Commenting on the M&S Money investigation, Colin Kersley, chief executive of the division, said: "Having been through one of the most complicated couple of years for family finances, the importance of getting things right for the future has never been more important.
"Too many of today's parents are not yet confident about the nation's efforts to improve financial awareness and ability for the next generation."
By Ashley Little
