Wednesday 30th of June 2010
With purse strings tightened and the effects of the recession still being felt by many, saving is now seen as one of the most important aspects of modern life in Britain.
And information on individual voluntary arrangements (IVAs) may show cash-strapped citizens that this is still possible, even if they owe large sums on unsecured financial products.
According to Phil Perry, director of ARK Financial Planning, the economic downturn has meant people are looking to their everyday expenditure, such as utilities and insurance, to try and save cash.
IVAs offer UK adults another way to free up income to put towards filling their coffers, as those who embark on the method of insolvency could end up completely debt-free if they meet the reduced-rate monthly debt repayments - of which there are typically 60.
This might leave people with much more control over their finances and in a position to spread their salary around without having to use the majority to repay credit.
IVA info, therefore, could be a sensible option for those who want to boost their bank balances for good.
"It’s not just saving for a rainy day, it’s that regular commitment," Mr Perry says.
By Rachel Powell
- 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
- Downsize 'or face bankruptcy'
