A leading UK debt charity has warned that the IVA or Individual Voluntary Arrangement will increase in 2007 as consumers are still failing to save money to help service their debts.
Credit Action has warned that consumers need around 3 months worth of salary saved up to deal with sudden changes of circumstance such as illness, sudden loss of job, or a relationship break up.
Many analysts have warned that homeowners who don't leave cash aside for when they really need it, could lose their property in the worst case scenario.