Monday 21st of December 2009
If you have found unsecured debt and bills spiralling out of control, then you may be one of the parents who have resorted to taking out money from your children’s bank accounts.
A new survey by Engage Mutual Assurance has found a fifth of you have dipped into the cash stashed away for your loved ones’ futures, although an IVA could negate the need for you to do this by helping you to clear debt in more controllable chunks.
Over 80 per cent of mums and dads who have borrowed cash insist it is merely a loan and they will pay it back as soon as they can.
Rather than leaving your kids short, repaying debt through an IVA can mean that over time, you may find your income stretches further, meaning you can leave their finances well alone.
"Whilst it might be possible to budget for everyday spending and the usual bills and direct debits, it is the unexpected costs which people find hard to cope with," says Karl Elliott, marketing director at Engage Mutual.
But if you find that your unsecured debts of more than £15,000 mean that even bills are difficult to budget for, you may discover an IVA proves to be the answer to your family’s future financial security.
By Kim Parsons
- 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
- IVAs could help self-employed stay on track
