Think Money

Think Money

March 29, 2010 12:01 ET

IVA Could Help Struggling Borrowers Get Finances in Order

LONDON, UNITED KINGDOM--(Marketwire - March 29, 2010) - After research from uSwitch.com found that around 11% of British adults are currently "living beyond their means", financial solutions company Think Money advised people to take a look at their finances and ensure they are taking steps to stay within their budget and make their finances run as smoothly as possible.

But the company added that some people may simply be unable to live within their means because of unaffordable debt repayments, and those people should get debt advice as soon as possible, before their situation deteriorates further.

The uSwitch.com report found that 5.4 million adults currently spend more money than they earn, compared with 4.8 million who said the same in a 2008 survey. Of these, 48% use overdrafts and 34% use credit cards to 'plug the gap', while 19% borrow from friends and family to get by.

A debt expert at Think Money commented:

"This report highlights a serious problem faced by more than 10% of the adult population. If you spend more than you earn, you will be getting into debt and it may not be long before this debt becomes very difficult to pay back.

"Of course, some of those living beyond their means will be doing so because of existing debts, and anyone struggling with their day-to-day finances should contact an independent debt adviser to discuss their options.

"There are a range of debt solutions to help in all kinds of circumstances. Even if there is no realistic way for the borrower to repay their debts in full, a debt solution like an IVA [Individual Voluntary Arrangement] or bankruptcy can help."

Notes to Editors

One of the UK's leading financial solutions providers, Think Money is based in Salford Quays, Manchester, and employs around 800 employees to deliver a comprehensive range of debt, loan, insurance and banking solutions.

Think Money defines its mission as 'To educate, rehabilitate and advise on all aspects of financial management'.

For more information, contact Melanie.Taylor@thinkmoney.com (0845 056 6480) or visit the Think Money website at http://www.thinkmoney.com/debt/IVA/.

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