Thursday 13th of August 2009
The road out of the recession is likely to be paved with intentions of effective debt management, it has been claimed.
Macroeconomic analysis organisation Lombard Street Research explains that wider lending from organisations may not be a precursor to a more stable financial footing for the nation.
Rather, more careful debt management and a move away from a credit-fuelled economy could be the platform for more stable future economic growth.
Lombard Street Research economist Melissa Kidd says that the hope that "the economy of the UK will become less dependent on debt" is one of the lessons that can be drawn from the current recession.
For families that have operated in debt for some time, now could be the economic environment to make a change, with individual voluntary arrangements (IVAs) an option for those with substantial sums owed to different lenders.
With professional IVA advice, households could find that a significant proportion of their debt can be written off completely.
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
- IVAs could offer new mortgage customers breathing space
