Saturday 27th of March 2010
Does it feel like your wage never stretches far and you are always running short by the end of the month?
When your income has to be split between everyday costs, household bills and unsecured debt repayments like credit card bills then you may be left with nothing pretty quickly, although an individual voluntary arrangement (IVA) can slash the cost of credit card repayments.
In such cases, you could be tempted to further pile purchases on the plastic - or even resort to payday loans, which help plug the gap until your next wage, but come with a sky-high interest rate attached.
The government recently announced that the minimum wage for adults will rise from £5.80 to £5.93 from this October, a move the Trades Union Congress (TUC) welcomes.
But even those of you with a much higher wage could find it does nothing to cut down your £15,000 or more unsecured debts, which just seem to spiral out of control.
However, an IVA can bring some stability to your finances by freezing the interest rates this owed money, allowing your wage to stretch further every month.
Brendan Barber, TUC general secretary, adds he is pleased the minimum wage age will drop to 21 from 22.
By Hayley Jones
- 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
- 70% 'worried about funding retirement'
