Thursday 10th of September 2009
Individual voluntary arrangement (IVA) advice could be sought by a higher number of Britons after a new survey shows that two-thirds are pessimistic about the economic climate.
The research by Scottish Widows reveals that 37 per cent of people are negative about their short-term financial situation, which could include trying to meet monthly repayments on credit cards and personal loans.
Meanwhile, 36 per cent admit they are pessimistic about their long-term monetary position. However, an IVA can, in the short term, freeze the interest on unsecured debt, allowing individuals to repay a more manageable amount of debt every month, which could see them debt-free for the long term.
Alison Morris, head of commercial management at Scottish Widows, says: "Although green shoots may be starting to emerge from the recent economic turmoil, the downturn of the past year should be the wake up call people need to start taking their finances in hand."
One way to do this could be to undertake an IVA, which is cheaper than bankruptcy and can prevent creditors from taking action against borrowers while the agreement is in place.
By Hayley Jones
- 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 may help you kick your plastic addiction into touch
