Wednesday 17th of February 2010
You may be worried that your climbing unsecured debts not only threaten your financial future but that of your children too, although an individual voluntary arrangement (IVA) could help answer such concerns.
A new poll by Scottish Provident reveals that many families want peace of mind when it comes to making sure loved ones are financially protected should an unexpected event occur.
Not being able to provide for your children could be one of the biggest things you feel guilty about when it comes to your unsecured debt.
Should the worst happen to you or your partner, or if one of you falls seriously ill, the fact most of your income is eaten up by your debt commitments could mean very little is left for your kids.
IVAs could improve the monetary outlook of your offspring by helping to clear your debts of more than £15,000 over around a five-year period. Once an IVA has cleared what you owe, this could leave more money to put to one side for your children.
"Budgeting for the future involves creating a sensible financial plan, while not sacrificing valuable cover that may be vital in protecting a family in both the short and the long term," says Susan Barclay, head of marketing at Scottish Provident.
Indeed, if your personal loan and credit card repayments mean you have not been able to think about the long term, then an IVA could help you get a better hold of your finances.
You may feel upset that you have had to undertake an IVA, but the consequences of not clearing debt as soon as possible could be even worse to contemplate.
The Scottish Provident survey states that it has seen a four-fold rise in sales of its critical illness plans on an income basis as the economic downturn has shocked many parents into the reality of how poor financial planning can have a serious and long-term impact upon children’s’ future stability.
By Chris King
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- 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
- Negative equity help 'may feature in Budget'
