Saturday 17th of July 2010
It can be extremely difficult to keep up with essential payments once your debts start to escalate.
Information on individual voluntary arrangements (IVAs) may, however, help cash-strapped Britons ensure they have enough disposable cash to put towards their bills.
According to figures from Consumer Focus, up to 1.4 million people in Britain have pre-pay energy meters but have had their supplies cut off in the last year.
Furthermore, the data shows 57 per cent of respondents say not having enough cash is one of the reasons why they don’t top up their account, while 21 per cent admit this is the number one reason.
IVA information could, though, be valuable for those of you who have little income left to go on bills because you’re spending it all on unsecured debt repayments.
The method of insolvency freezes the interest on the cash you owe, meaning you may immediately find more of your salary can be used on keeping yourself warm.
"We must be concerned that hundreds of thousands of vulnerable consumers are walking a tightrope between topping up their energy to stay warm or buying a decent meal," says Mike O’Connor, chief executive of Consumer Focus.
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
- 'Don't be ashamed' to ask for IVA advice
