Best Debt Management Programs - Savings Accelerate the Debt-Relief Process

For various reasons, people find it difficult to pay off their debts. If not managed properly and timely, you will lose control over your assets. For ultimate protection from bankruptcy, the best solution is to enter into an Individual Voluntary Arrangement (IVA). However, you should be having good savings in place to avoid falling behind the monthly payments. Moreover, there are various other good reasons to build and maintain your savings account.

Emergencies :
Tragedies pop up from nowhere and to deal with them you must have enough credit besides essential monthly debt repayments. Also, you need rapid access to your savings in case you need to carry out an urgent household or vehicle repairs or replace an expensive item. Furthermore, if you have saved funds, you need to worry about falling behind the debt repayment.

Better Returns on Savings Account :

It’s good to leave some funds in your current account and it may attract in lower rates, or even you can maintain it at zero interest. However, you can get the best interest rates on your savings account. The rates offered in your savings account will be attractive at a time of high-interest rates. So, to get good returns to consider placing some of your funds in the higher interest account.   

Tax Benefits:

In the UK, you can shelter up to £20,000 per tax year (2018/19 tax year) into an Individual Savings Account (ISA) where there will be no capital gains and income tax charged on your returns. Known as ISA allowance, this savings amount can be invested in cash (tax-efficient deposit account), or split this allowance across shares and stocks, or invest it all in either one. So, whatever Debt Management Plan you get into, always keep the ISA allowance in place for additional earnings.

Education:
If you want to give your children a better education, private or independent schools are good options where the average fee is around £15,500 per annum. Likewise, for university education, you need savings in advance. So, it’s strongly advised that you must keep some funds aside other than the monthly debt payments. It will help you with the easy management of your children’s education. Remember, the best time to start building and maintaining your savings account is often as soon as possible to keep student loans at bay.  

Other Savings:

Through regular savings you can manage weddings, treats and events like Christmas without disturbing your debt repayment plan. So, keep some money in hand for other purposes that might not be coming any time sooner. But it will not upset your monthly affordable installment to pay off your debt.  

Final Thought:

As you seek free debt advice UK from financial experts, they will definitely recommend that you should hold an emergency fund of at least two times your monthly essential outgoings in an instantly accessed savings account. You can seek credit in financial crises, but it will be hard to obtain loans and high-interest rates may be charged. So, the right solution to deal with unpredictable circumstances and recovering from debts faster, have a lump sum available in your savings account whenever you need it will make your life less stressed. Feel better with the right debt management solution from IVA Experts UK for quick debt-relief.