Tuesday 24th of November 2009
Individual voluntary arrangement (IVA) advice could be of assistance to Britons who find they have to work longer hours just to help meet their debt commitments.
However, a new survey by insolvency trade body R3 reveals that a third of workers have worked longer hours of overtime without extra pay and one in ten have taken unpaid leave.
Borrowers who need extra income in order to clear their credit and store card balances may find working extra hours for no money proves unhelpful.
Instead, asking for IVA help could be a more pro-active approach to take, as up to 70 per cent of debt can be reduced through this agreement, giving households breathing space and support in repaying what they owe.
With the poll also finding that one in ten workers have accepted a pay freeze, IVA advice could be useful for individuals whose interest repayments are climbing but income remains where it is.
Peter Sargent, president of R3, claims: "With record numbers of insolvencies and rising unemployment, these people make a significant contribution to their companies, their colleagues and the economy as a whole."
By Kim Parsons
- 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
- Insolvency levels 'will remain inflated until the Olympics'
