Wednesday 23rd of February 2011
People with debts amounting to more than £15,000 may want to start asking individual voluntary arrangement questions sooner rather than later, following one expert's comments.
Justin Modray of candidmoney.com claimed managing expensive arrears needs to be the financial priority for most households, especially as it appears the high rates of interest charged by many credit cards look set to continue.
The industry figure noted: "As public spending cuts and higher taxes continue to take their toll, there's little doubt some families will increasingly struggle to balance their finances."
He added that the current situation does not spell only bad news for Brits.
Families with decent variable rate mortgages are likely to enjoy low monthly payments as a result of it being unexpected that the Bank of England will raise its interest rates this year.
His comments follow recent research from R3 that revealed 43 per cent of people in Britain think their financial situation is likely to worsen over the next six months.
By Chris King
