According to Life Insurance Online, the number of people entering into Individual Voluntary Arrangements (IVAs) and declaring bankruptcy could leave many of the country’s children with a “grim” financial future.
While many UK consumers consider credit card debt and personal loan arrears to be part of modern life, there could be unwanted consequences for future generations whose inheritance is in jeopardy, suggest the financial service firm.
“Whilst borrowers may have a strategy for how they are going to pay off their debts in the future, the best-laid plans will stand for nothing if they die before they have achieved their aim and have no safety net either,” said the company’s boss John Williams.
“If a parent dies and a large chunk – or all – the household income disappears, the prospect of the children’s carefully-planned future suddenly looks very different.”
Figures released by the Insolvency Service earlier this month revealed that during the first three months of this year there were more than 30,000 IVA entered into nationwide.