Monday 27th of September 2010
An Individual Voluntary Arrangement (IVA) may help those who are struggling with their debts due to poor financial management.
Speaking to the Yorkshire Post, Robert Brown of law firm Keeble Hawson explained many clients he sees "are juggling debts and have only been paying back the minimum amount on cards", which has contributed to them falling into financial difficulty.
An IVA may be ideal for those who are in a similar position and have debts of more than £15,000.
It can mean the amount they owe is erased within five years, but hard work is needed in order to ensure the option is successful.
Mr Brown, a member of advisory body R3, added some people are "driven to the edge" by their money problems and urged individuals to ensure they only spend within their means where possible.
He was commenting after R3 released data showing those living in London are most worried about their debts, with nearly half of the capital's residents concerned with their financial situation.
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
- Men could start to turn their financial troubles around with IVA questions
