Monday 23rd of November 2009
Individual voluntary arrangement (IVA) help may be on the cards for Britons in debt after a new study is set to reveal their money concerns are second only to Spain.
The Independent reports that the Janus Capital survey shows that 35 per cent of Britons believe their borrowings are too high in relation to their income, with the Europe-wide average standing at 30 per cent.
David Bowers, a financial strategist who wrote the study which is due out later this month, says using unsecured borrowings such as loans and credit cards is now an essential for modern-day households.
Indeed, 46 per cent of respondents admit they have used car loans, unsecured bank loans and credit cards to cover expenses, although seeking IVA advice could help households make headway into interest repayments.
"Ultimately, we can’t remove the requirement for short and long-term debt as a whole, but the management of it does need urgent attention if we are to avoid storing problems for the future," Ric van Weelden, co-chief executive of Janus Capital International, tells the publication.
Agreeing to an IVA to start clearing debt could reduce household reliance on unsecured borrowings as less disposable income may be eaten up by repayments, leaving Britons with more spending power.
By Mark Waterman
- 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 answers may help Brits continue to fill coffers
