Thursday 10th of December 2009
You may be one of the increasing number of Britons in their twenties who have been forced to move back in with your parents because of climbing debt, although an individual voluntary arrangement (IVA) could help you get back into the black and eventually move out.
With spiralling debts and living costs, you may have decided to take steps towards clearing your unsecured credit balances by slashing your monthly expenditure and moving back in with your parents.
This may not be an ideal situation, but could help you make headway into debts. One of your questions on IVAs could include whether or not you will have creditors phoning up your parents’ house demanding repayments.
However, all communication is done through an IVA negotiator and as long as you keep up with your monthly repayments lenders should stay at bay.
Speaking to the Guardian, advertising planner Claudia Howard, 25, who moved back in with her parents earlier this year, said after she finished her degree, she "pretty much moved straight into a shared flat in London. I stayed there for two years but, with the rent costing £625 per month and a pay freeze at work, I was suffocated by debt".
By Ashley Littley
- 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
- Seek advice before it is too late, bureau tells debtors
