Saturday 27th of February 2010
The economic downturn may have emphasised to you the importance of saving to cover the cost of an emergency and other unexpected events.
But with a large proportion of your income eaten up by your unsecured debts, such as credit and store cards, putting any money to one side may be impossible, although an individual voluntary arrangement (IVA) could help.
A new survey from National Savings and Investments (NS&I) shows that almost a quarter of Britons wish they had saved more money over the last 18 months so they could have coped better with the recession.
If you find yourself with no financial net to land on during these difficult times then you may think there is no light at the end of the tunnel of debt. However, an IVA may be the answer if you have debts of more than £15,000.
IVAs merge different unsecured debt commitments together and freeze their interest rates, making monthly repayments more controllable.
This could leave you with a little spare cash to put to one side for future emergencies.
"For those who have not yet developed the [saving] habit it is not too late to start. However, it is important to not just see savings as a reaction to major events," advises John Prout, NS&I’s savings spokesman.
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
- Demand for IVA answers to rise in line with personal insolvencies?
