Wednesday 30th of December 2009
If you are one of the many UK parents in serious debt then your biggest motivation to clear what you owe could be to provide financial stability for your family, a goal an individual voluntary arrangement (IVA) can help with.
However, new findings from Unbiased.co.uk show that while savings topped £19 billion in the second quarter of 2009, they dropped to £13 billion in the third quarter.
One of the biggest reasons why you have cut back on your savings - or are unable to save completely - could be because a large chunk of your income goes on personal loan and credit card interest repayments.
An IVA is one way you can repay this type of debt but you may have a few questions on IVAs before deciding this repayment plan is suitable for your circumstances.
One question could be how an IVA impacts upon your family life. Unlike bankruptcy, an IVA is a private matter and if you keep up with repayments there is no reason why you cannot stay in your home.
Furthermore, lenders are advised to not contact you unless it is done through a specialist IVA negotiator. With young children, you may be concerned about unexpected visitors and telephone calls.
By Mark Waterman
- 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
- Over 55 and still in debt? An IVA could secure your financial future
