Wednesday 12th of May 2010
Individual voluntary arrangements (IVAs) might benefit Brits who find it increasingly difficult to keep in control of their finances and stay out of the red.
According to figures from Alliance Trust, the financial wellbeing of UK consumers appears to be decreasing, as a result of aspects like low levels of earnings growth and high levels of inflation.
And when you have money on various credit cards and personal loans to deal with too, you could find your debts spiralling dangerously out of control.
IVAs, however, give you the chance to chip away at your unsecured debts - if it’s worth more than £15,000 - thanks to some hard work and discipline over a period of around five years.
By merging your debt repayments into one, monthly, reduced-rate outlay, IVAs may also lead you to take more responsibility of your money than seemed possible before.
And seeking IVA answers as soon as possible could be a wise choice, as Shona Dobbie, head of the Alliance Trust Research Centre, explains: "The prospect of cuts in public spending and increases in taxation following the election are expected to add further to the pressures facing households."
- 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 can be useful for those who are able to help themselves
