Tuesday 14th of July 2009
Individual voluntary arrangement (IVA) advice may support young people in Scotland, after new research discovered that they have been hit the hardest by the recession.
Almost four out of five people aged between 20 and 29 have changed their lifestyles "significantly" because of the recession, the study by Clydesdale Bank revealed.
While this may include seeking IVA help for unmanageable unsecured credit repayments, many claim that they are now trying to save for big purchases, rather than falling into debt to cover the costs.
Once an IVA has cleared the debt of individuals, they may find that, unlike bankruptcy, there could be no stigma attached and they are free to make a fresh start.
Speaking to the Deadline Press and Picture Agency, Steve Reid, the bank’s retail director, stated: "As the survey reveals, it is encouraging to see this generation adopt a prudent attitude towards saving for the future."
An IVA may be a better option than bankruptcy for young people. Recent research of Insolvency Service figures by Wilkins Kennedy, an accountancy firm, found that 55 per cent of under 24s who have been made bankrupt are female.
- 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
- IVA answers may help you stop suffering in silence
