Tuesday 8th of June 2010
Individual voluntary arrangement (IVA) FAQs might provide all the information you need to show you it is possible to start saving, even if you have debts to deal with.
Figures from unbiased.co.uk show the amount of cash we’re stashing away has dropped significantly since 2008 - from £39 billion to £16 billion.
While saving is down, however, borrowing is on the up, with 37p for every £1 saved being loans or some form of credit.
In contrast, two years ago, £1.67 of debts was being paid off for every £1 saved.
IVAs, though, may make it easier for you to free up income to go towards boosting your coffers.
They chip away at the money owed on unsecured financial products over a period of five years and could leave you completely debt-free, meaning you might eventually be able to put more of your hard-earned salary to better use elsewhere.
"We Brits do need to save more. Everybody should aim to have at least three months’ worth of income in cash savings, ideally six months’," Kevin Mountford, head of savings at moneysupermarket.com, says.
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
- IVA help could support Britons who are not on top of their finances
