Thursday 14th of October 2010
Individual voluntary arrangement (IVA) FAQs could be useful for Brits who have mounting debts but only now realise the importance of having significant savings in place for emergencies.
According to Jasmine Birtles, founder of moneymagpie.com, people nowadays are too used to living a carefree lifestyle and splashing the cash to understand why it's essential to have a financial safety net.
She explains young individuals, in particular, are used to spending as much as they want on credit cards and don't save up nearly as much as they should.
Furthermore, Ms Birtles - who regularly appears on TV programmes such as This Morning, BBC News and GMTV - notes: "I think most people aren't really aware of the importance of having a savings safety net."
"Ideally people should have enough money in a saving account to cover them for about three to six months in case anything goes pear-shaped - if they lose their job," she goes on to suggest, before stating: "It doesn't surprise me at all that most people, or an awful lot of people, only have a small amount saved."
IVA FAQs could, however, be full of information for those who realise the importance of saving for the future, but want to get rid of their unsecured debts first.
The measure might have you in the black after around five years, with the help of approximately 60 reduced-rate monthly repayments that may potentially make it considerably easier for you to manage your finances.
What's more, you don't have to worry about your path into certain careers being obstructed, as could be the case with bankruptcy.
Ms Birtles' comments follow research from HSBC that shows 15 million Brits would only be able to survive for three days on the small amount of savings they've got stashed away.
By Hayley Jones
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- 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 questions may assist Brits desperate to cut debt
