Thursday 17th of December 2009
If you have been forced to reduce your hours at work to help care for a loved one then you may find that you can no longer meet your monthly unsecured debt repayments.
Writing in the Stoke Sentinel, Florence Gavin says her 21-year-old daughter struggled to pay her £105-a-week rent after her hours were cut at work.
And when she gave up her job to look after her disabled father, she found her money problems intensified further.
If you are still working some hours you could find an individual voluntary arrangement (IVA) can take some of the pressure off, although you may have a few questions that need answering.
Repaying unsecured debt through an IVA - available to those who are employed - may prevent your home from being repossessed. Lenders are also advised to only contact you through a professional negotiator.
Both of these benefits to an IVA could put your mind at rest, especially if you care for a loved one in your own home and are worried about its security, as well as threatening phone calls.
Ms Gavin said that her daughter has to prioritise her rent, council tax and energy bills. You may also do this and find you have nothing left to clear your unsecured debt.
By Chris King
- 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
- Information on IVAs may help those unable to repay their debts
