IVA could help budgeting families

More UK families may be looking to short term or long term debt solutions, such as a Debt Management Plan (DMP), as the back to school rush hits household pockets for more than seven hundred million pounds.

Research by insurance firm LV= has found that kids have come first – with the typical spend on kitting children out for the new term being a hundred and twenty-two pounds.

Perhaps surprisingly, given the amount of homes currently in debt, the survey found that almost half of parents expect to spend more this year on back-to-school goods than 12 months ago.

However, 27 per cent of parents say they will aim to cut back on the amount of children's activities they currently pay for.

Kevin Still, Director of Atlantic Financial Management, says: “It is not just the back to school costs, but the accumulation of expenditure shocks from the time that the kids break up for the Summer holidays. Credit card bills are likely to be hitting for the holiday costs and many working parents have jobs that work around the school holidays where they may not be paid for this time off. Clearing debts takes time and the evidence is that this is not normally before the next Summer holiday.”

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