Thursday 8th of July 2010
When you owe a large amount of cash to numerous creditors, it can be easy to turn to your savings as a way of funding your everyday purchases - and even debt repayments.
Information on individual voluntary arrangements (IVAs) could, however, show you that you don’t need to rely on your dwindling coffers to help you stay afloat.
According to figures from Birmingham Midshires’ Saving Britain research, growing numbers of consumers are raiding their savings pots in an attempt to pay for things like emergency repairs and utility bills.
If you find yourself regularly dipping into your nest egg to help you afford such items - and even ensure you have the capacity to meet your debt repayments - seeking IVA info could be beneficial.
IVAs might leave you with more disposable income to spend on essentials by freezing the interest on the cash you owe on credit cards and personal loans.
In addition, they may have you completely debt-free after around five years, with renewed control over your finances and peace of mind you no longer need to rely on your savings to drag yourself out of the red.
By Kimberley Parsons
- 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 soften reliance on high-interest loans
