Car downsizing in IVA

headstuckinsand

A couple of months ago I downgraded my car from a 2 litre Mondeo to a 1.3 Fiesta in an effort to reduce my outgoings given the rising cost of fuel. This has reduced my fuel bill and insurance significantly but I'm concerned that the IVA company will want to take what I've saved when it comes round to the annual review.

I haven't told the IVA company that I've changed cars - was this wrong? The car was not included in the IVA as an asset as it was worth less than £2k. Do I need to tell them that my fuel and insurance has gone down?

Thanks

FoggyBrain_2

They might well notice the insurance saving at your annual review, however they have nothing other than your word for fuel costs, as long as they are within the "normal " range they don't usually ask for reciepts.

Foxy-Stoat_3

Agreed, I dont remember ever telling them what car I was driving at the annual reviews and they never wanted to see bank statements only payslips.

Am sure with the cost of insurance going up 30-40% and the increased in fuel costs then there wont me much of a saving.... WILL THERE !

Best take a look at the previous year's anual review expeniditure form and make sure the figures look right.

DrSqueeze

Remember when you do your annual review that although you may well have made a saving on car running costs, you might be paying more for household bills (food, gas, electricity etc) so one might balance the other. It's only if your overall expenditure drops noticeably that you would be expected to pass the saving on to your creditors.