Sunday 28th of March 2010
For those Britons who are self-employed, the recession may have taken a particular toll on their finances, as many rely on their own coffers to see them through difficult times.
With bank balances stretched, some people may have turned to personal loans in order to see them through, but are now struggling with the high interest rate repayments - and many self-employed may find an individual voluntary arrangement (IVA) answers this predicament.
According to R3, confidence among small UK businesses is low.
"Many struggling businesses drew heavily on their reserves in order to survive and their resources have now begun to run out," explains president of R3 Peter Sargent.
If coffers are running on empty and personal loans have been used as backup, self-employed individuals may decide undertaking an IVA is a better option than risking going bankrupt and losing everything.
Self-employed Britons can embark on an IVA as long as they can prove that their income from their business is enough to meet repayments.
Mr Sargent added that help should be sought sooner rather than later for those firms worried about their financial future in 2010.
By Neil Burton
- 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
- Borrowers may have to take the first step to IVA advice
