Tuesday 1st of December 2009
Individual voluntary arrangement (IVA) help could be needed by those of you who underestimate your bills, meaning you have less cash to put towards unsecured credit repayments.
A new poll by Bright Grey reveals that you could be underestimating your essential monthly spend by as much as £964.
The average Britons thinks they spend less than £900 a month on bills, the survey shows. But in fact this totals at around £1,400.
With such a big gap, many of you may struggle to understand why you are not able to find the cash to meet your credit card and personal loan commitments.
Rather than ignoring the problem, seeking IVA advice could prove to be of assistance. Rather than letting interest repayments pile up, an IVA can freeze these, allowing more disposable income to go on clearing balances.
"When it comes to financial planning, most people seem to have the blinkers firmly in place. However, if they start to pull together a realistic plan now they could save themselves a lot of heartache in the future," advises Roger Edwards, proposition director at Bright Grey.
One realistic plan could be an IVA, which allows you to take the first steps down the road to becoming debt free.
By Chris King
- 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
- Have you stopped paying your credit card bills in full?
