Thursday 3rd of June 2010
Asking individual voluntary arrangement (IVA) questions could be beneficial if you are still feeling the effects of the recession and want to ease the financial burden resting on your shoulders.
According to the Confederation of British Industry, firms selling services to customers saw their volumes of sales dip in the last three months.
Commenting on the figures, David Rodgers, managing director of GfK NOP Consumer Services, says consumer confidence is currently extremely low.
IVAs may, however, help to shore up the finances of those who are holding back on their spending because of debt problems.
They cut money owed on credit cards and personal loans - if it is worth more than £15,000 - over a period of around five years, which could leave you completely debt-free and make your income go further.
In addition, the fact they require hard work and discipline may show you the importance of staying out of the red in the first place.
Asking IVA questions, therefore, might go some way in boosting your confidence in being able to manage your money.
"It is probably not surprising that consumers are still continuing to tighten their belts," Mr Rodgers adds.
By Kimberley Parsons
- 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 could show it is never too late to start repaying debt
