Wednesday 24th of February 2010
If your variety of credit and store card debts eat a large proportion of your income then this may leave little cash for childcare, a situation an individual voluntary arrangement (IVA) could be the answer for.
A new study by LV= shows that childcare between the ages of six months and 16 could cost as much as £54,696 for one child.
Nursery fees, holiday and after-school clubs all take their toll on your coffers, but the added pressure of meeting credit and store card commitments may mean you feel like finances are out of control.
If it all gets too much you may think that bankruptcy is one way to make a fresh financial start. But an IVA could prove more beneficial, especially if you have young children.
A family home stays safe as long as the repayments under an IVA are kept up with. But a property may be sold when you are declared bankrupt so your creditors can be paid.
"In an environment where everyone’s feeling the strain, it’s more important than ever to try and save a little and often as it can all add up over the long term," advises Mike Rogers, LV= group chief executive.
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
- IVA advice may have improved the debt outlook for consumers
