Tuesday 14th of September 2010
Seeking individual voluntary arrangement (IVA) answers might be a sensible option for Brits who have amassed large amounts of unsecured debt but want to get their finances back on track and start saving.
According to the latest MoneyMood Survey by Legal and General, there is a growing number of people in the country setting cash aside in case they end up losing their job.
Some 40 per cent of UK men noted they starting filling their coffers for this reason last month.
However, there may be some people who find it impossible to create a nest egg due to mounting unsecured debts swallowing up their income.
Answers on IVAs might, therefore, be a useful source of information for those who want to start saving but have to get out of the red first.
This method of insolvency chips away at the money you owe on personal loans and credit cards - if it's more than £15,000 - over a prolonged period of time.
It requires a lot of dedication and discipline, but you may find the effort is worth it when your income goes further every month.
Mark Gregory, Legal and General executive director of savings, said: "It's not surprising that the focus of saving is turning to meeting short-term needs, such as saving in case you lose your job."
By Ashley Littley
- 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
- Bankruptcy-threatened Britons may turn to IVA advice
