Whats it really like living with an IVA?

lisal0u

Hi lovely people,

Im am currently arranging an IVA, I have sent all the paper work in and they are currently drafting my proposal.

I don't have any other options but I just wondered what it was really like to live during an IVA and any good hints and tips for survival.

Everything seems very bleak and depressing at the minute but it would be nice to hear what Im really in for!

Many thanks
Lisa

FoggyBrain_2

Well ... deep breath ..... first, check all the allowances to make sure they are realistic and that you will be able to live on them, as all surplus will be paid into the IVA. You will need to learn to budget ... which actually becomes quite fun !! Living within the allowances isn't a holiday --- but nor is it a prison sentence. It will take time to get used to -- with no credit for retail therapy and the like --- but, whatever you do buy will be yours! The stresses of juggling and robbing Peter to pay Paul will be lifted and, once the creditors cotton on, you will be able to answer the phone again without fear.

Yes, it's tight, but you are in control now ..... enjoy it :-)

headstuckinsand

Hi Lisa,

Firstly good luck on the proposal. Here a few few tips I can offer from my albeit brief experience so far:

1. Open a new bank account with a bank not related to any of your creditors (I'm now with co-op and found them very helpful and supportive).
2. Assuming you are paid ona monthly basis, try to arrange for all debits/standing orders to be paid out soon after your wages go so that you know exactly how much money is left in your account.
3. Use an accounting programme (or even just a simple excel spreadsheet) to keep track of your spending to ensure that you always have sufficient money to last the month.
4. At the end of each month, whatever money is left over, put it aside - ideally into a separate savings account so that you build up a buffer to help with rainy days and one-off expenses like car tax and repairs.
5. Don't be afraid to speak to people about your IVA. You'll be amazed at how many people are understanding. We're all human and all make mistakes.
6. This is probably the hardest one but be strict with yourself. When out shopping, you have to ask yourself "Do I really need this? and Can I really afford it?" if the answer to either is no then don't buy.

Hope this helps. I think the thing to understand is that the feeling you'll get when your iva is approved is such a relief and although 5 years may seem an awfully long time - it will go a lot quicker than you think. It's not going to be easy - you will have bad months and the first few are probably the hardest as you learn to adjust but just remember that there's light at the end of the tunnel.

Good luck and I hope all goes well.

lisal0u

Thanks for the advice

I've already set up a new bank account and have all my direct debits come out the day after pay day so I know what's left!

My sister has advised me of an app for my phone that helps track what I'm spending and that will be really useful!

I will be relieved when it's all sorted as I'm getting a bit fed up with the calls and letters and having to go over the same things with my creditors every time they ring!

For the last few months I've been trying to live frugally! I'm getting better and haven't used a credit card for months! It's actually really nice not using them and only buying things I have the actual money for!

What I'm going to find hard is getting my friends to understand that I can't spend like I used to! It's going to be tough, especially as a single girl! I don't like staying in by myself!

I'm sad that I've got into this mess and I'll be 38 before I'm out of it but glad that I'm finally sorting it out!

Thanks again for your advice
Lisa

FoggyBrain_2

As you are already getting the proposal put together, don't bother explaining anything if your creditors call --- just tell them you are entering an IVA and give them the IPs details.

Actually, once my IVA had been agreed I did enjoy playing with them on the phone ( it takes a while for the call centres to realise what's happened) --- I just used to let them prattle on about missed payments and how much was needed to make up the arrears. They would then ask if I was going to make a payment and I calmly replied "nope". You can almost feel THEM getting uncomfortable !!! String them along a bit, but remain totally calm ( that really puts them off) ... then just say, not paying am in an IVA, speak to my IP.

Foxy-Stoat_3

Well done for getting to this point, and dont worry about the age thing, if you were in anything like the situation I was in, I would of been 58 if I paid the credit cards off properly ! I started mine when I was 30, now all done and dusted. I use a simple Excel spreadsheet every month so I can see how much I have left and when stuff comes out. Use it all the time, its a good tool for forward planning.

I had a credit card with a zero balance, which I kept off the IVA. I bought £10 worth of fuel every month and paid it off straight away. This has helped me a little after my IVA finished as my credit file had some sort of history once I finished, but doubt it made any real difference. Probably a naughty, but was ok.

You dont need credit cards after coming off the IVA as you learn to only buy stuff when you have the money, rather than use someone elses money AND get charged 30-40 % interest for the priveldge. They should teach you this stuff at school!

Credit cards are good for buying holidays (and paying them off within a month) as you get added protection when the tour operators go bust! But other than that, it doesnt get used.

Good luck, am sure you'll have a large drink when its finally agreed!

Barkley_2

The IVA is the best thing I have done. I was paying things off, but had nothing to live on for the rest of the month. We ended up selling gold at one of those "we buy gold" stalls in the shopping mall. The last straw came when I had no option but to sell my gold chain that was bought for me by my parents on my 16th birthday. Im 39 now

I started my IVA in September 2010 and 56 payments to go :j

My IP knows how much money I have coming in and out and as long as I notify them of any changes, then there isnt a problem. My last direct debit went out today, so what is left in the bank is mine. It has been a long time since I was able to say that.

Good luck and dont worry too much about the process. Everyone worries until they get the call to say "your proposal has been accepted.

Andy

FoggyBrain_2

Foxy --- remember you are talking to a digital dinosaur --- are these excel spreadsheets easy to set up ? I have excel on this computer -- but it has never been opened let alone used !!

Foxy-Stoat_3

LOL

If you pm me your email address, I'll send you my one, with the numbers removed of course.

Should be easy to understand, you can change stuff to suit.

You need to let me know what version of excel you have too, as I have the lastest 2010 version but can save it as the older version but may not work in the old old version....more techonlogical wizardary I am afraid !

trudij

Have a good look round on this site too - the old style moneysaving board has been a huge help to a lot of us, as have a lot of the others.

Cant add anything to the others really - you have done the worst bit, now it should be fairly simple.

good luck - and whatever you do, keep talking and asking questions, as long as you are straight with your IP, things should go swimmingly.