Monday 6th of July 2009
Britons may require individual voluntary arrangement (IVA) advice, after new research has revealed that if they had a higher income, saving some of it would not be their first priority.
Approximately 25 million people in the UK claim they cannot afford to save any of their cash, the poll by moneysupermarket.com stated.
However, an average extra monthly income of £518 could allow them to start saving, this group of people claim. By seeking IVA help, non-savers may find that they can better manage their financial commitments, such as credit card bills, allowing more money to be put to one side.
Despite this, the survey found that home improvements, holidays, clothes and nights out are favourable options to put extra cash towards, although more responsible spending could be clearing debt with an IVA.
"Saving is not something that comes naturally to many people, it takes discipline and self-sacrifice," said Kevin Mountford, head of banking at moneysupermarket.com.
Director of Credit Action Chris Tapp recently said that rather than buying items without saving for them first, Britons need to "wake-up" and get on top of their finances.
- 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
- Demand for IVA answers to rise among suffering graduates?
