Wednesday 16th of September 2009
Individual voluntary arrangement (IVA) help could improve the saving prospects for many UK households, some of which are unable to put any cash aside at all.
Saving money can help cushion a financial blow to a family should they experience a sudden drop in household income, allowing them to meet their unsecured debt commitments.
However, a new poll by Abbey shows that 40 per cent of Britons are not saving any money at all, which could be because their disposable income gets eaten up by personal loan repayments.
There has been a six per cent fall in the number of people saving their cash every month. And the 26 per cent of individuals who do save admit they stash away less now than they did last year.
Reza Attar-Zadeh, director of savings and investments, says that people who "haven’t yet kick started their savings habit to make a start - putting aside even a small amount each month will quickly add up to help provide them with a safety net".
Once an IVA has helped households clear their debt, any extra could be put into a savings account once it no longer needs to be put towards unsecured debt.
By Hayley Jones
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- 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
- IVA questions to help Brits out of vicious credit card cycle?
