Tuesday 24th of August 2010
Individual voluntary arrangement (IVA) answers could offer a lifeline to households that are at risk of going under because of their money troubles.
Figures from moneysupermarket.com show growing numbers of people are having to dip into their savings to cope with high inflation, with 56 per cent of respondents admitting having done so in the past.
Some 23 per cent say they would use their savings if they needed the money.
However, debt-ridden families who don't have nest eggs on which to fall back could find themselves in need of answers on IVAs.
That's because the method of insolvency whittles away cash owed on unsecured financial products - if it's worth more than £15,000 - with the help of around 60 monthly reduced-rate repayments.
Clare Francis, site editor at moneysupermarket.com, comments: "Whilst generating more income on savings is important, people should be doing everything they can to lessen the effects of the current economic environment."
By Rachel Powell
- 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 could see off credit card cheque debt
