Wednesday 13th of October 2010
Individual voluntary arrangement (IVA) answers might be useful for people who are battling hard to stay on top of their debts but are concerned they don't have enough cash saved up as emergency provisions.
According to new research by HSBC, 30 per cent of UK adults have less than £249 stashed away as a financial safety net, despite the recommended amount being the equivalent of three months' average take-home pay.
In addition, the figures show of the 2,100 people surveyed, 19 per cent don't have any savings at all to fall back on, while 20 per cent admit they wouldn't be able to pay the rent, mortgage or other bills if they suddenly found themselves out of work.
Some 22 per cent say they would leave it up to their partner to cover their expenses if they were unexpectedly made redundant.
Seeking IVA answers could, however, be a sensible option for those of you who realise the need to boost your coffers, but are worried about having to deal with your unsecured debts first.
That's because the measure could have you completely debt free after around five years, as long as you owe more than £15,000 on financial products such as credit cards and personal loans to three or more creditors.
And although it requires a lot of hard work to complete, the process could leave you with some much-needed extra income to put into your savings.
Commenting on the figures, Richard Brown, head of savings for HSBC, says: "These findings demonstrate a worrying lack of preparation amongst UK residents. With the current climate of uncertainty, it is of utmost importance that people are setting aside a realistic sum of money to be used in emergencies.
"By putting away a small sum each month Britons can help themselves build up an emergency savings pot as provision for any eventuality."
By Chris King
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