Thursday 3rd of March 2011
Individuals with arrears should attempt to sort out what they owe as soon as they can, it has been suggested.
Ed Bowsher, head of consumer finance at lovemoney.com, has urged people to pay down their debts rather than attempt to increase their savings pot.
And for those deep in the red and owing in excess of £15,000, addressing their debt problems by asking IVA questions could be one way to put a lid on their predicament.
The industry figure said: "If you have a serious debt problem, I’d firmly advise you to pay down your debt rather than save."
He added savings will only give poor returns at present, meaning settling arrears makes much more sense from a practical point of view.
His comments come after recent research from moneysupermarket.com showed one in ten adults in the UK permanently live in their overdraft, with a third of Brits dipping into the facilities in the last 12 months.
By Hayley Jones
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