Thursday 26th of August 2010
Individual voluntary arrangement (IVA) answers might be beneficial for parents who find their debts are making it difficult to afford the cost of other essential purchases.
According to figures from LV=, mums and dads are expected to shell out an average of £122 on buying new items for their children in preparation for the upcoming school year.
And 46 per cent of parents say they are going to spend more on back-to-school accessories this year than they did in 2009.
Answers on IVAs may, however, prove useful to those of you who are worried about not being able to kit out your kids this year because of spiralling debts.
Owing cash on credit cards and personal loans can swallow up income that could be used elsewhere, but an IVA might help free up spare cash by whittling away your unsecured deficit with reduced-rate monthly repayments.
Head of protection an LV= Mark Jones says: "It is surprising that many parents are responding to increased money pressure this year by spending more on back to school basics - clearly kids come first despite the downturn."
By Kimberley Parsons
- 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 FAQs may help you start getting your finances back on track
