Monday 20th of September 2010
Individual voluntary arrangement (IVA) answers might help British parents get through their financial troubles and allow them to provide more pocket money for their young ones.
Research from Halifax shows the allowance given to kids in the UK has fallen to a seven-year low over the past 12 months, leaving the average at £5.89 per week.
Last year, weekly spends were typically £6.24, while in 2005 children were receiving an average of £8.37.
In addition, the study reveals 42 per cent of youngsters reckon they should be given more.
Answers on IVAs may, though, offer you assistance if unsecured debts are hampering attempts to reward your children.
The method of insolvency clears money owed on financial products such as personal loans and credit cards by merging your monthly repayments into one, reduced-rate outlay.
It's only available for those who are in full-time employment, have a deficit of over £15,000 and owe funds to three or more creditors, but if you're eligible you could find it leaves you with more free cash to put towards your kids.
And according to Flavia Palacios Umana, head of savings products at Halifax, maintaining pocket money for youngsters helps build their financial awareness and "stand them in good stead in later life".
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
- IVAs could be used by households with little disposable income
