Wednesday 11th of November 2009
Low-earners are being pushed towards financial crisis, a new report by the Resolution Foundation states, so they may be interested in taking individual voluntary arrangement (IVA) advice to help solve their debt problems.
The recession is forcing Britain’s 14.3 million lowest earners into money difficulties as repaying what they owe takes up a large portion of available cash.
Almost a quarter of people in this bracket are asked to pay out more than 25 per cent of their monthly income on debt repayments, according to the study, although an IVA could reduce payments into one, monthly sum.
This is forcing more cash-strapped consumers closer to financial meltdown and, in the case of homeowners, possible eviction.
Sue Regan, chief executive of the Resolution Foundation, said: "Low earners are being hit hard by the recession. This report shows that low earners will continue to lose jobs, homes and get into financial trouble unless further support is available."
Further support for some may come in the form of an IVA - a financial rescue plan which could allow debtors to repay what they owe at a more affordable rate.
Such a scheme could be ideal for low earners looking to make the most of their limited income.
By Rachel Powell
