Thursday 1st of July 2010
Individual voluntary arrangement (IVA) questions might be beneficial to British employees who are hoping to retire in the foreseeable future but are concerned about unsecured debts swallowing up their income.
According to Robin Ellison, partner at Pinsent Masons, the recession is causing problems for people who have personal pensions and want to end their working career in the next few years.
Questions on IVAs could, however, offer much-needed information for those of you who are in the same boat and also owe more than £15,000 on unsecured financial products.
That’s because an IVA may have you debt-free after a period of hard work and discipline that lasts around five years, freezing the interest on your debts and merging all of your monthly credit card and personal loan repayments into one.
In addition, it doesn’t obstruct your path in certain careers, such as accountancy, which could be the case with bankruptcy.
Although Mr Ellison says "there is not much" older workers can do about the recession causing pension pots to diminish, an IVA could, in fact, go a long way to helping them shore up their finances in time for retirement.
By Neil Burton
- 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
- Demand for IVA advice to increase?
