Debts which you build up now could prevent you from enjoying a comfortable retirement, so you may need to consider looking for debt solutions. There are many debt management plans available, such as Debt Relief Orders (DROs) or Individual Voluntary Arrangements (IVAs). IVAs work by letting you pay off your debt over five years and if there is any left over by the end of this period, it gets written off. People with debts of over £15000 may wish to consider an IVA, as once it is completed they can start setting aside money for when they are older. Currently, nearly a fifth (18 per cent) of people are planning on using just their savings and basic state pension to see them through their retirement. However, it is widely acknowledged that the pension is rarely enough to cover outgoings, so the ability to build up savings is vital.
IVAs can lead to a debt-free retirement
April 27, 2010 By
