Friday 26th of June 2009
Individual voluntary arrangements (IVAs) could be needed as a result of consumers taking on more debt.
Research from Unbiased.co.uk revealed that £2.7 billion of new debt was incurred by people in the UK during the first quarter of 2009, while savings dropped to a record low of £14 billion.
The website suggested that positive news about the country’s economy had led individuals to go back to their old habits after several months of trying to pay back debts amid the recession.
If your debts begin to get out of hand, it could be wise to seek IVA advice. An IVA is an alternative to bankruptcy that can help people to pay back their creditors while giving them the potential to hold on to some assets, such as a house.
David Elms, chief executive of Unbiased.co.uk, warned that even though there are signs of economic recovery, it is important that people look after their money properly and get help if they need it.
"It is vital for consumers to continue nurturing their financial position. Anyone with financial concerns should seek professional advice from an independent financial adviser," he remarked.
- 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
- Financial education could reduce IVAs required
