Spend It or leave it??

headstuckinsand

Hi,
Just wanted to add my experience to the discussion. I don't want to endorse spending prior to an IVA, however I think some of it is unavoidable and could be considered necessary - for instance, I had to get new tyres and brake disks around the same time as I was choosing to go down the IVA route. I also went and did a big food shop to stock up.

The two credit cards that I used (Barclaycard & MBNA) actually rejected the IVA but were forced to accept as the loans I had made more than the 75% acceptance required.

I have to admit I felt really bad about it as I knew I was spending money that I could not afford and would be included in the iva. It was not really ethical but argued myself into thinking that these things would help in the long run during the IVA. Just so I'm clear I do NOT recommend doing this!

Once, you're in an IVA though your thinking does change. It's no longer 'what do I want' and now 'what do I need and can I afford it?'
So, I'm not judging in the slightest, but you have to ask yourself - do you really need a new kitchen or could you wait 5 years until you can buy it with your own money?

Governor8777

Thank you all for your advice and comments.

As I have stated in one of my posts I am currently living in rented property and have the option to buy it, (RTB) it is going to probably take a few month to all go through hopefully, I have to fill the form out again tonight and post in off in the morning so they can value the property again, I only say again as I did this just before xmas and it come to light that some repairs needed doing so I told them they had to do it before I buy it, and now I have to start from scratch!!!

anyway if I am going to do an IVA, I get a bonus of £935 before tax at the end of this month and I was going to put that on my credit card as I had to pay the car insurance on my credit card, should I bother putting it on the credit card if I am going through the IVA or just keep aside just incase?

Headstuckinsand- Can I be nosey and just ask who your IP is please? just I'm from bradford and just curious who you went with cos I couldnt find anybody close, I have been speaking to people at Melanie Giles who seems really helpful and giving me a lot of advice.

thank you

headstuckinsand

I'm in Bradford too (small world). I went with Payplan, everything's been 'relatively' painless. I've got my annual review due now though so this will be the test.

Governor8777

I noticed that on your location, that is why I asked, .

I have been told it is a good idea to get another Bank account for my wage to go in and my direct debits to go out, one that is not linked to any of the people I owe money to, who is the best bank to go to?

I have a Lloyds Loan and Credit Card and have two Halifax Credit cards.

FoggyBrain_2

IVA friendly banks are Co-OP -- (ask for the basic cashminder account) , Nat west seem OK, as do Barclays.

As for the bonus -- I would squirrel it away in case you need any emergency repairs or some such during your IVA. You will have a contingency fund built in to your allowances, but, obviously, it will take a while for there to be any reasonable amount to cover for emergencies.