Tuesday 5th of January 2010
If most of your income goes on financial responsibilities including unsecured debt, it may leave little cash over to put into a savings account for your children.
A new study by Halifax has revealed that in areas where the average wage is higher, so too is the amount of cash in savings accounts for youngsters.
The highest average savings balances are found in Harrow, where kids have £2,122 put to one side for their futures.
But if after repaying your store and credit card commitments you have little cash to spare, an individual voluntary arrangement (IVA) could answer your concerns.
By freezing the interest rate on store and credit card repayments, an IVA could mean your income goes further when it comes to clearing debt.
And once you have completed an IVA, you could find you have more disposable income to place into a savings account for your children now that debt is not eating away most of it.
"There are wide variations in children’s savings balances between regions, with generally higher balances in Greater London and the south-east compared to the north of England and Scotland," Nitesh Patel, economist at Halifax.
By Neil Burton
- 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 could help with everyday outlays
