Sunday 24th of October 2010
Seeking individual voluntary arrangement (IVA) answers could be ideal for debt-ridden adults who are ready to take control of their finances and start saving for the future.
According to Alan Easter, strategy director at Honister Capital, people in Britain are "certainly not" setting aside enough cash, before noting attitudes towards creating a financial safety net have to change.
He said individuals can no longer anticipate interest rates boosting their nest eggs, as "they can't expect the market to grow their funds out".
Mr Easter went on to explain: "The attitudes and the behaviours have to change but that has to come from an understanding."
Answers on IVAs might, however, be useful for those who recognise they need to start filling their coffers, but first want to remove their debt burden.
The measure can clear money owed on credit cards and personal loans - if it's worth more than £15,0000 - over a period of five years, without obstructing your career in certain professions. This could be the case with bankruptcy.
Mr Easter's comments follow research from LV= that showed Brits have spent some £143 billion on "lifestyle essentials" in the past year.
- 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
- Families in need may benefit from IVA questions
