Monday 22nd of March 2010
Individual voluntary arrangement (IVA) answers could become increasingly in demand among Brits who are struggling with their money and are worried about the effect predicted tax hikes will have on their bank balances.
Policy institute Reform suggests that mounting National Insurance contributions, as well as a failure to raise tax thresholds in line with growth in earnings, might see people on an average wage of £23,300 footing an £8,500 personal tax bill in 2011 - 2012.
And this could force households with big unsecured debts into a more precarious financial position - or even seriously into the red.
However, IVAs can wipe out money owed on credit cards and personal loans worth more than £15,000 by merging debt into a single, more affordable monthly payment.
This may offer some breathing space to worried Britons who need a bit of extra income to put towards their taxes.
Commenting on the figures, designer of Reform’s tax calculator Dr Patrick Nolan says: "Getting the public to support the tough measures necessary for restoring the public finances requires them to feel part of the process. The public must have a say on the public finances."
Written by Chris King
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