Wednesday 19th of January 2011
People deep in the red and struggling to keep on top of their debts may want to consider asking individual voluntary arrangement questions sooner rather than later.
This is because Richard Talbot, director of Credit Action, has claimed that if individuals have to choose between paying off debts and attempting to save, then settling money owed is more advisable.
The expert explained the current low interest rate on savings make this a less attractive method, but observed people should try to balance the two in order to have some rainy day cash set away.
"Once they've got something put aside for emergencies then it would be a lot better to pay off the highest interest rate debt first," Mr Talbot added.
His comments follow recent research carried out by Skipton Building Society, which revealed one in three people in Britain believe they do not earn enough to put money aside each month.
By Chris King
