Friday 7th of May 2010
Individual voluntary arrangements (IVAs) may be beneficial for self-employed Brits who have had to dip into their own pockets to help their businesses survive in the current economic conditions.
According to figures from Kensington, the recession has led to some 1.2 million people in the UK becoming their own boss.
However, with the economic downturn still having a big effect on companies today, it’s tempting for business owners to take out personal loans to help steer their enterprises in the right direction.
IVAs, therefore, could become increasingly popular among those who are self-employed and have ended up with unsecured debts worth more than £15,000 as a result of trying to keep their firms afloat.
IVAs may require people to prove their business makes enough money to repay the reduced-rate payments, however.
So, asking IVA questions may be a sensible decision for people who are worried about their decreasing ability to afford both the cost of everyday life and running a company.
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 questions could help as credit card take-up increase is expected
