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Andy feels that his debt arose due to
• Availability of credit, as he was able to increase his credit limits easily. • Always wanting more; the bigger house, the better car, aspiring to a lifestyle that just got him deeper and deeper into debt.
• Combining personal and business debts and using credit for business.
• Always believing his business would improve.
When Andy realised he needed help
Andy did not have a “defining moment” or realisation that made him seek help. Rather a gradual thought process that lead him to first deal with his business debt by firstly, selling his house and moving into rented accommodation, then taking out an IVA to deal with the remaining personal debt.
When Andy first contacted a debt solutions company, he was sceptical that they would be able to help him. He had heard about IVAs through television advertising and although the whole process was quite unknown to him, he was hoping to put a legal end to his debts. Andy received good advice from his IP and he was reassured that no money was required upfront, so felt the IVA was worth a shot. In retrospect, Andy would have shopped around IVA providers; however he has been happy with the provider he chose.
Andy on IVAs
Andy strongly emphasises the need for people to be fully aware that the solution is not an easy one and it will be a very tough 5 years of living on a shoestring. Some advertising, he believes, makes IVAs appear to be an easy, instant solution whereas it is not made clear that you do truly need to be “insolvent” to take out an IVA.
For Andy, going through an IVA has been tough, not only for him but also for his wife. While he threw himself into his work, Andy’s wife has not had such an outlet and has had to deal with not going out with friends, and forgoing many social activities.
Christmas was a hard time, and while it felt most people were spending up big in the New Year sales, Andy and his family could not afford such a luxury. Andy’s children however have been remarkably resilient and haven’t really been affected by the IVA. They might not have every new toy and gadget, but though the generosity of Andy’s extended family, they have managed to go on a family holiday each year, therefore always having something to look forward to. In saying that, is hasn’t been a breeze, the children had to go from all have a bedroom each, to sharing a bedroom in a smaller house.
Career wise, Andy has felt his debt problems have not really affected his progress; he ensured he paid off all business debts through the initial sale of his house. He was quite well know in the community and did not want to do wrong by businesses that he owed money to. Bankruptcy was never really an option due to the public aspect of the solution combined with Andy’s community minded attitude of not ruining local relationships or leaving other people out of pocket.
Since taking out the IVA, Andy’s career has gone from strength to strength which is one of the reason he could settle his IVA early. Next month Andy will have real disposable income for the first time in 3 years, but he says he will never fall into the debt trap again.
The aspects that Andy found hardest during his IVA:
• Andy did not have a debit card for a while. This made him realise how many things you rely on a debit card for.
• He couldn’t even rent a TV; a direct contrast to being able to buy the latest things on credit.
• Living on such a tight budget meant shopping on eBay for clothes, and when doing grocery shopping having to stick to strict limits which meant putting items back if going over budget.
Andy’s IVA has taught him the true value of money and the future is looking bright for him and his family as they can start saving and planning for a debt-free future.
To talk to Andy please ring 020 8328 9495 or send him an email by visiting this page |
Budgeting at christmas 
