Tuesday 21st of July 2009
Individual voluntary arrangement (IVA) help may be needed by some of the most cash-strapped households in the UK.
A new report from charity Barnardo’s revealed that many families are turning to doorstep loans in order to keep up with their financial commitments and to cover everyday costs.
Careful budgeting for outgoings that are constant, such as bills and food, can be "derailed" by unplanned events, such as the need to replace an essential household item.
"The families manage their cash on a week-by-week basis. There is no slack: rarely any spare cash at the end of the week," the report noted.
Households which find themselves in such a position may want to consider an IVA. By reducing monthly repayments to a more manageable amount, Britons may find they have some spare money each month to give them leeway for unplanned expenses.
Newspaper the Times recently reported that a continuing number of Britons rely on loans from pawnbrokers when their financial situation tightens.
By Mark Waterman
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