Tuesday 13th of April 2010
The "worrying" frequency with which Britons exceed their budgets every month could lead to growing numbers of people asking individual voluntary arrangement (IVA) questions.
IVAs offer big spenders who have large unsecured debts - over £15,000 - the chance to get their finances back on track over a period of five years, while freezing interest rates on their repayments at the same time.
And this could help the 60 per cent of Brits who were found by Money Basics to surpass the budgets they set for themselves every single month.
Commenting on the research, Chris Tapp, spokesperson for the website, said: "Easy access to cheap credit has conditioned many to believe it doesn’t matter if they spend too much as they can always borrow to meet any shortfall."
However, this mindset very often leads to a "cycle of misery and debt", he added.
Seeking IVA answers could help overspending Britons break out of this vicious cycle, cut down their unsecured debts and allow more income to be put towards important, everyday purchases.
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
- Pre-paid cards may avoid need for IVA help
