Wednesday 27th of January 2010
A new generation of savings-savvy Britons could find that an individual voluntary arrangement (IVA) answers their desire to regain a firm financial footing.
Research conducted by building society Birmingham Midshires reveals a renewed interest in maintaining healthy levels of savings among UK consumers.
This is indicated by the percentage of people saving for a rainy day, which has risen by half from 18 per cent to 27 per cent.
Many people are now only raiding their savings in response to an urgent need such as emergency repairs to their car or home.
Those uses are now more popular than spending on non-essentials such as a holiday.
However, for families in debt, it could be difficult to reach financial security and begin saving for the future.
A household dealing with debt could find an IVA answers their particular problem, as the debt-resolution process can freeze interest and, with the agreement of creditors, write off a significant portion of the total amount owed.
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
- IVAs demand to grow along with rent prices?
