Wednesday 24th of February 2010
Getting answers on individual voluntary arrangements (IVA) may not just be important for you to clear your climbing debt so you no longer have to deal with constant repayments.
Undertaking an IVA could be essential to financially protect your children should something happen to you or your partner.
A new study by Aviva reveals that one in four of you could only get your hands on £100 in cash within a week if a household income dropped because of a critical illness or death.
One reason for this lack of money may be because of rising unsecured debt commitments which make it impossible for you to put any cash to one side for the future.
The survey shows that the typical British householder could only cover the bills for 14 days if they or their partner died or fell critically ill.
If unsecured debt repayments would add to this financial headache then an IVA may be ideal.
An IVA can merge different unsecured debt commitments together into one, monthly, more affordable repayment.
This may mean that once the IVA has been completed over a period of around five years, your family is now considerably more financially stable to deal with any unexpected events.
Commenting on the poll, Louise Colley, head of protection for Aviva, says: "Money worries are the last thing a family would need at such a distressing time, so we would encourage everyone to take the time to consider life and critical illness cover to make sure they have adequate protection in place."
Not having protection may mean that if the worst happens to you or your partner, your children may be left without any financial support.
Undertaking an IVA as soon as possible could allay your fears about what would happen to your kids should a household income take a hit.
By Hayley Jones
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- IVA answers may help deal with government spending cuts
