Sunday 16th of May 2010
Asking individual voluntary arrangement (IVA) questions might be the sensible first step if you want to have renewed control over your finances in the face of continued economic uncertainty.
Despite emerging from the recession at the start of the year, the UK’s economy is still very much on its knees.
Mike Fosberry, president of the Personal Finance Society and national head of financial services at Smith and Williamson, says: "The recession, in my view, is far from over."
He adds that people are becoming more nervous about things like unemployment increases and the public sector deficit.
If you’re worried about the fact you have big unsecured debts and concerned about your prospects of remaining in employment, now could be the time to embark on an IVA and get your finances in order before anything unexpected happens that could affect your income.
IVAs can only be taken out by those who owe more than £15,000 on credit cards and personal loans.
But they could be an alternative to bankruptcy for cash-strapped Britons as they protect the equity on your family home and ensure details of your money troubles aren’t published in the local newspaper - as it often the case with bankruptcy.
By Chris King
- 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
- IVA could help beat rising personal loan rates
