Wednesday 14th of July 2010
Positivity about the UK’s economy may have risen following the strict emergency Budget, but people should not throw their financial planning out of the window.
Individual voluntary arrangement (IVA) answers could highlight the importance of keeping a handle on household finances and not getting carried away with credit card spending, even if the economy appears on the up.
According to recent research from Barclaycard, spending in-store, online and on credit and debit cards was 9.9 per cent higher in June when compared to the same month last year.
But Richard Dodd, spokesman for the British Retail Consortium, said Brits are currently experiencing a "calm before the storm".
Once VAT rises to 20 per cent and public sector cuts have been made, "consumer confidence will take a serious knock", he stated.
IVA answers could show cash-splashing consumers that short-term excessive spending on credit cards can lead to long-term financial problems, which - if not caught early - may spiral out of control.
Cutting debt down now with an IVA can result in consumers forking out less interest, helping them get on the right track in time for any financial shocks.
Posted by Neil Burton
- 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 offer boost to credit card addicts
