Tuesday 21st of July 2009
Individual voluntary arrangement (IVA) help may not be needed by some individuals if they learnt to better manage their finances when they were younger.
Pre-paid cards could allow younger Britons to keep on top of their money because they will not be allowed to spend what they do not have, lovemoney.com said.
Commenting on the announcement by O2 that it is set to launch a pre-paid Visa card for under-13s, Szu Ping Chan, personal finance writer at the website, stated that the cards could allow young people to be responsible for their own money.
Getting into good financial habits at a young age may support Britons in avoiding the need for IVA support in the future, by only spending what they can afford and therefore avoiding falling into heavy debt.
"It could teach kids valuable lessons and they also feel independent and responsible for their own cash," Ms Chan suggested.
A new survey from the Learning and Skills Council found that 20 per cent of young people are already concerned about money.
By Kimberley Parsons
- 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 could avoid the problem of small balances cleared first
