Monday 7th of September 2009
Planning for the future could help families who find themselves facing large amounts of debt, it has been advised, although an individual voluntary arrangement (IVA) may be of assistance in such situations.
Writing for the Observer, Jill Insley reports the story of Anna, whose husband Bill was diagnosed with cancer. However, the couple had minimal life assurance and had done no financial planning for unexpected circumstances.
Bill died a few months later and Anna was left with debts of more than £100,000 and had to sell the family home.
Households in debt and concerned about what would happen to loved ones should something unexpected occur may want to clear their balances with an IVA, which could make a family more monetarily secure for the future.
"While the financial damage could be repaired, it is easy to see how it might have led to my bankruptcy had our circumstances been slightly different," Anna tells the newspaper.
Indeed, rather than bankruptcy, seeking IVA advice could help families take an alternative route and may allow them to keep their home.
A home is repossessed in the UK every 11.5 minutes, Credit Action recently noted.
By Neil Burton
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