Tuesday 16th of June 2009
Debt problems are preventing Britons from putting money away towards their retirement, research has indicated.
According to a study by Lincoln Financial Group, a quarter of adults in the UK are currently failing to save.
More than a fifth of these explained that outstanding loans and debts are a barrier, something IVA help may be able to address.
By entering into an IVA, borrowers may be able to reduce what they owe in order to allow for better planning for the future.
Simon O’Connor, head of products and marketing at Lincoln Financial Group, highlighted the importance of long-term thinking when it comes to personal finances.
"Clearly people’s finances are stretched at the moment. Unfortunately, this can lead some people to push pension contributions to the bottom of the priority list," he said.
Howard Archer of IHS Global Insight recently noted that consumer debt problems are likely to contribute to a delay in the UK’s economic recovery.
- 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 might offer support for Brits who mix their business and personal finances
