Wednesday 2nd of December 2009
Individual voluntary arrangement (IVA) help could prove beneficial to those Britons who are concerned about their job security.
While an IVA cannot be used by those without a job, many people may decide to start clearing their unsecured debts through this repayment plan now, so should they find themselves unemployed further down the line, they have less debt to deal with.
The latest Credit Action report reveals that during the 12 months to September, 1,723 people on average became unemployed every day.
It adds that 2,247 individuals currently lose their jobs every day in the UK, which could see an increasing number of Britons asking for IVA advice now to financially prepare for the future.
Through an IVA, interest rates on debt such as store and credit cards are frozen. Without climbing interest rates to battle, people are able to clear larger portions of what they owe, which could prove advantageous if their household income ever drops.
Chris Tapp, director of Credit Action, says that "a lot of people are worried that they will lose their job and so even those people that don’t have a financial problem right now, are worried about what the future might hold for them".
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
- 'Record numbers' in the red
