Wednesday 6th of October 2010
Individual voluntary arrangement (IVA) questions could hep cash-strapped Brits take charge of their bank balance and ensure they have enough financial provisions for the future.
Figures from Scottish Provident show millions of people in the UK would be unable to maintain their current lifestyle for half a year if they had to rely solely on their backup funds.
And this falls to five months if they would have to make use of credit cards to fund their way of living.
Commenting on the figures, Martin Bamford, chartered financial planner at Informed Choice, says it's true people aren't setting enough cash aside for emergencies.
He goes on to state: "It is important that financial planning always starts with paying off expensive debt. It is a bit futile when you are planning provisions for emergencies if you're paying off things like credit cards and personal loans."
If you're struggling to pay the balance on such unsecured financial products but want to start saving, however, now might be the right time to ask questions on IVAs.
The measure could have you completely debt free after meeting a series of reduced-rate monthly repayments, meaning your income potentially goes further and can be used to fill your coffers.
By Rachel Powell
- 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
- IVA advice may be preferential to equity release for older people
