New HSBC Survey Highlights Worrying Financial Back-Up for Many -- Though an IVA Could Provide the Answer, says Debt Free Direct

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Debt Free Direct highlight how an IVA could help those in financial trouble, in response to the new findings by an HSBC survey.

HSBC, the financial services company, have conducted new research which has discovered 30 per cent of UK adults have less than £249 put aside as a financial safety net, despite the widely recommended figure being equivalent to three month’s average net pay. The findings highlight a growing need for a more managable way to control debt and finances, with an IVA a possible solution.

The HSBC survey also found that out of the 2,100 people who took part, 19 per cent do not have any savings whatsoever to lean back on. A further 20 per cent admit they would not be able to pay the rent, mortgage or other bills should they abruptly find themselves out of work. 22 per cent insist they would have to rely on their partner to cover their expenses if they were unexpectedly without a job.

Debt advice providers Debt Free Direct (DFD) insist an Individual Voluntary Arrangement (IVA) could be the answer for the many people who are finding it difficult to stay afloat of their debts but are concerned they do not have enough money saved up for emergency provisions.

DFD's Derek Oakley says, "Exploring the option of an IVA could potentially be a very sensible option for those who realise their funds need to be boosted, but are concerned about dealing with unsecured debts first."

"Through the IVA route, you could be completely debt free after approximately five years, if you owe more that £15,000 on financial products such as credit cards and personal loans to three or more lenders."

Oakley continued; "The process does require hard-work and effort to complete, though by the end you could have some much-needed extra income deposited into your bank account."

Richard Brown, Head of Savings for HSBC, has commented on the report figures, saying; "These findings demonstrate a worrying lack of preparation amongst UK residents. With the current economic climate of uncertainty, it is of utmost importance that people are setting aside a realistic sum of money to be used in emergencies.

“By putting away a small sum each month Britons can help themselves build-up an emergency savings pot as provision for any eventuality.”

Debt Free Direct is the UK’s leading provider of specialist debt advice on serious debt problems. Established in 1997, the company advises over a thousand people a week on different debt solutions. Debt Free Direct has a commitment to helping vulnerable consumers struggling with large amounts of debt. The company has also been active in campaigning for tighter regulations within the debt industry.

For more information about Debt Free Direct, visit

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