Wednesday 21st of July 2010
The government has had to take drastic action in the emergency Budget to try and reduce the state’s deficit. But this has left many families concerned about how the measures will affect them.
Information on individual voluntary arrangements (IVAs) may, however, offer support to cash-strapped households that end up losing out as a result of the new regime’s cuts.
And according to Tim Nichols, press officer at Child Poverty Action Group, the plans outlined in the recent Budget are going to "hit the poorest harder than [they hit] the wealthiest".
IVA information could, though, help people negate the effect of the measures by showing them a way of getting out of the red.
Mr Nichols states the changes will start impacting individuals "over the next couple of years".
But because an IVA takes around five years to complete, it could be the method of insolvency is favourable as it gives you the chance to cut down your unsecured debt and shore up your finances before the cuts impact on your bank balance.
By Rachel Powell
- 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
- IVAs might offer support for Brits who mix their business and personal finances
