Monday 6th of September 2010
Individual voluntary arrangement (IVA) FAQs could benefit UK adults who are concerned about the effect public sector job cuts will have over the next few years and want to start getting their finances under control.
According to a recent prediction by the British Chambers of Commerce (BCC), unemployment could peak at 2.65 million in the first half of 2012, rising from the 2.46 million recorded between April and June 2010.
Commenting on the forecast, Jonathan Loynes, chief European economist for Capital Economics, says: "Somewhere between half a million and a million jobs are likely to go" as a result of the government's public sector job squeeze.
However, he adds this will not happen "all at once" but instead over an extended period of time.
IVA FAQs could, though, help people worried about the situation start the ball rolling on taking control of their bank balance and getting rid of their debts.
The method of insolvency is only available for those who are in a full-time job and owe at least £15,000 on credit cards and personal loans to three or more different lenders.
Mr Loynes adds: "We've hardly felt the thin edge of the wedge yet."
By Chris King
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