Tuesday 19th of January 2010
If you have young children then you may be aware that you automatically received a child trust fund (CTF) voucher to allow you to open up an account and start saving for your loved ones’ futures.
But if an increasing amount of your income goes on repaying a variety of personal loans, then you may not have any spare cash to save for your children, although you may find an individual voluntary arrangement (IVA) answers such a problem.
IVAs can freeze the interest on your different loan commitments, meaning that repayments should become more manageable. And while it can take up to five years for you to repay what you owe through an IVA, your reduced loan repayments could mean you can start to place a small amount into CTFs.
"The CTF will make an enormous difference to the social and economic fortunes of a generation, which is why it is vital the government CTF contribution should be maintained for all," asserts John Reeve, chief executive officer of Family Investments.
If you encourage other family members to place cash into a CTF, your children could use the money when they turn 18 to cover university fees or to help place a deposit on their first home.
By Rachel Powell
- 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
- Equity release market "resilient"
