Tuesday 14th of July 2009
Individual voluntary arrangement (IVA) help may be required by British households after a new survey showed the amount of financial juggling they have to do.
Mortgage and rent is the biggest expenditure for people, adding up to an average of £515.19 a month, the research by Confused.com stated. Paying for food is the next biggest outgoing for a household, adding up to over £300 a month.
The third biggest financial headache for Britons are credit card and loan repayments, which cost the average household £232.90 a month, according to the research.
IVA advice may be needed as the website noted that these repayments add up to around £2,790 a year. Many households may struggle to meet these commitments, but an IVA could lower the interest on such borrowings, making the monthly amounts more manageable.
"Bills are an unfortunate fact of life and very few of us really stop to think about how much we’re paying out each month," said Gareth Kloet, spokesperson for Confused.com.
However, by reducing credit card and loan repayments with an IVA, individuals may find they have more money to put towards household bills, reducing the risk of defaulting on payments.
- 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
- IVAs may help get the creditors off your back once and for all
