Monday 20th of September 2010
Individual voluntary arrangement (IVA) questions may provide some much-needed assistance to Brits who struggle to make it through the month without experiencing money problems.
New data from R3 shows 42 per cent of UK adults find it difficult to make their finances last until their next payday, with the struggle typically occurring on the 20th day after they received their salary.
And the biggest reason for this, according to the insolvency trade body, is credit card repayments, which cause problems for 35 per cent of those who can't make it until payday.
In addition, settling bank loans, making big purchases and meeting mortgage fees were cited by between 15 to 17 per cent as swallowing up a lot of their income.
What's more, going out or money spent on luxury items causes troubles for 25 per cent of those who struggle.
If you've found yourself in a similar situation, however, questions on IVAs could show you it's possible to put an end to your days of using your salary to constantly meet debt repayments.
The measure might have you completely out of the red in around five years, after merging your repayments into around 60 reduced-rate, monthly transactions.
It takes a lot of discipline to complete, but you may find you end up with much more financial control than you had before, not to mention an income that goes further every month.
Commenting on the statistics, R3 president Steven Law says: "Our addiction to credit cards is still out of control, despite the recession and a ‘tightening up' of lending criteria."
"There needs to be a cultural shift in consumer attitude to debt. For too long we have got used to the idea that this is money we are entitled to," he adds.
Mr Law goes on to state using plastic is simply "delaying the inevitable day of payback".
By Kimberley Parsons
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