Monday 17th of August 2009
The recession has made people embarrassed over their financial standing, it has been claimed, although individual voluntary arrangement (IVA) advice could be an alternative to the stigma of bankruptcy.
According to Sainsbury’s Finance, almost a fifth of individuals in debt and who are in a relationship admit they have hidden the full extent of their money problems from their partner.
Indeed, 1.92 million individuals claim they hide extravagant or big purchases from their partner.
Such buys could have been made on store or credit cards. When the interest fees on these balances start to spiral out of control, an IVA could freeze the charges and allow consumers to better manage their repayments.
"If you have money worries the best course of action is to tackle any financial concerns head on and seek advice on how to start rectifying the situation," said Karen Horsburgh, head of Sainsbury’s Money Matters.
As such, IVA advice could also allow for better communication between lenders and borrowers, through a mediator, so both sides know where they stand during the repayment of debt.
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
- Want to take control of your finances? IVA questions and answers may offer assistance
