The final working years often involve saving, paying off mortgages and maybe giving extra towards their pension arrangement in order to have a stable and comfortable future. However with the increase of personal debt, there has also been a rise in the elderly population in dealing with debt and an IVA in their final years of working.
The average UK adult now carries personal debts, not counting mortgages, valued in excess of £8000. This doesn’t present a problem for a lot of people. To some extent such debt may be now viewed as a truth of life for several adults in their thirties and forties who are experiencing expensive years financially their families. Provided debts are paid off (perhaps once family costs have reduced) prior to retirement the use of credit can be an absolutely logical decision.
Increasingly, however people are reaching their retirement years still carrying the strain of personal debts. This can create immense difficulties along with the failure to have altogether repaid a mortgage, or an inability to have saved to one’s satisfaction to boost otherwise modest pension income. At a time when salaries are about to lower, this scenario can evoke significant concern and despair.
There has been a increase in the amount of people aged between fifty to seventy who are looking to start an Individual voluntary arrangement in order to control their personal debts.
An IVA should always be a last resort when handling debts but it exists just to assist with dealing with debts that otherwise cannot be paid off. It’s wise for anyone that has high personal debts and difficulties repaying them to address the situation as soon as they can. This is because debt problems tend to get larger and worse over time if not checked, and as choices such as an Individual voluntary arrangement may no longer be available when reduced retirement income starts.
So by dealing with personal debt sooner by perhaps using an , it may be possible to improve an individuals ability to repay their mortgage and be able to put some money towards their pension during their last few years of employment. To control high debt repayments for a drawn out time and if an individual is near retirement , this may not allow the individual to engage in necessary retirement planning. Anyhow an Individual voluntary arrangement can make unsecured debt repayment vanish if the five to six year IVA repayment term is completed.
Five or six years repaying an IVA is obviously a substantial course of time. Nevertheless numerous credit cards can take a lot longer than this to repay, especially where only the minimum contractual repayment is being made. The majority of such minimum repayments are just interest rather than any significant kind of capital repayment of the debt.
A person who is looking into their retirement planning must factor their personal debts into their decisions. Luckily, crucial measures such as an will not be necessary for most people. However, if it is clear that debts are not likely to be fully paid off prior to retirement an early decision to review options (such as an IVA) might result in a more positive retirement outcome than otherwise would have been the case.
IVA forum connects members of the public with a panel of selected representatives from providers and debt advisory companies. They can provide advice and IVA information on debt solutions that are typically used in the UK to deal with debts and have great personal experience in helping people with an Individual voluntary arrangement where it is suitable.
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