Tuesday 3rd of November 2009
In the run-up to Christmas some households could be keen to seek individual voluntary arrangement (IVA) help in order to address their finances - and potentially leave more for festive expenditure.
Robert Clark, senior partner at Retail Knowledge Bank, tells the Independent that "people always find cash" in the run-up to Christmas.
He adds that those who have been able to remain in work during the recent economic turbulence should be well positioned in order to do this.
But he predicts that debt management efforts could take a back seat as "if they are saving more and paying off their credit cards, they will forget about it for a month and then come back to it after Christmas".
Families keen to maintain their debt management efforts, as well as freeing up some festive funds, could look to IVA help instead.
IVAs are aimed at debts of more than £15,000 owed to different lenders - which could suit households with numerous credit cards.
An IVA can freeze interest charges and write off the unaffordable portion of the debt, potentially reducing the amount that must be paid back each month.
Written by Ashley Littley
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