Friday 18th of June 2010
Individual voluntary arrangement (IVA) answers may offer sufficient information to British mums who are concerned about being rushed back into work after having a child.
According to figures from uSwitch, 52 per cent of mothers are currently returning to employment prematurely to relieve the financial burden that’s suddenly fallen on them.
The statistics show while average net income drops by an average of 34 per cent during maternity leave, costs during the period surge to 90 per cent of the total amount of cash now being brought in by the family.
Answers on IVAs could, however, help show mothers that it is possible to get out of the red and put the debts accrued during their time off behind them.
IVAs whittle away money owed on credit cards and personal loans - perhaps taken out to buy new baby gear - and freeze the interest on outstanding balances at the same time.
And for those worried about their new family home being put at risk because of their debts, the form of insolvency may offer at least some peace of mind, as it protects the equity on properties.
Consumer policy director at uSwitch Ann Robinson comments that mums now have no choice but to return to work due to "the financial realities of real life".
By Hayley Jones
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- 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
- Bankruptcy figures 'expected to increase'
