Friday 29th of October 2010
Asking individual voluntary arrangement (IVA) questions might be a wise move by people who have exhausted all of their sources of borrowing and now want to get their finances back on track.
According to new figures from the Post Office, the recession has caused a large number of Brits to turn to their friends for extra cash, with some £7 billion being lent by mates.
Research by the organisation found 26 per cent of adults in the UK have given money to an average of four friends over the past year, with each typically borrowing around £133.
Furthermore, the study showed just under £3 billion is yet to be paid back.
Questions on IVAs could, however, be beneficial for those who are sick of having to borrow from as many institutions - and friends - as possible and now want to get back on the right track.
The measure might have you completely debt-free after around five years - if you have the discipline to meet the series of reduced-rate monthly repayments.
And it may offer peace of mind that you are not affecting your mates' financial wellbeing, while getting further in the red in the process.
By Ashley Littley
- 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
- IVAs 'can be the best solution' when debts mount up
