Saturday 19th of June 2010
Debts can spiral out of control when the person flashing the plastic or taking out loans left, right and centre doesn’t actually understand the financial products with which they are getting involved.
Information on individual voluntary arrangements (IVAs) could, therefore, offer some much-needed help to Britons who are not well educated when it comes to money.
According to James Daley, editor of Which? Money, there are currently "several generations of people who are pretty disengaged and only really ever check their finances or actually take any action when things are at crisis stage".
If these people were to research IVAs, however, they could find there is a way for them to emerge out of their unsecured debts and get their finances back on track.
IVA info may also show them the amount of hard work and discipline required to avoid money troubles and ensure they keep an eye on their cash flow in the future, as they take around five years to complete successfully.
Mr Daley’s comments were in response to recent figures from R3, which show 26 per cent of young Britons in debt refuse to open their bills.
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
- IVAs may help you avoid paying the price for missed credit card payments
