Cost of living in an IVA

[casiquebrado]

Good morning everyone.
I have been on an IVA for only 1 month.
I went into this with eyes wide open , knowing that it would be a fairly frugal existence, so I'm not complaining.
What concerns me is that like everyone else , my food , utility and fuel price increases are hitting me very hard.
Eg , my Gas DD has just gone from £71 to £84 , water from £25 to £34, fuel since beginning of the year has increased by 12% etc.etc.
Is it just me or does anyone else think it's time for allowances to be reviewed ?
I'm very grateful that my creditors have allowed my IVA , but it's proving to be even more difficult than I envisaged.

Regards,

Casi.

1/60th of the way[:)]

[Shining]

I totally agree with your post, I am finding budgeting very difficult right now. My circumstance has changed just this week and I have lost some income, I'm not sure how I am going to cope but I really don't want my IVA to fail and will do all I can to save it, however, in reality I do need a certain standard of living for the 3 of us. I'll take it one day at a time, my IP is aware and hopefully something can be done to sort my situation. All is not lost for me yet!

[MelanieGiles]

It is definately time for allowances to be renewed, but I am afraid that we are in the hands of the CCCS and I am not aware that they are going to be issuing new guidelines in the near future.

[casiquebrado]

Hi Melanie,
Hope you are well.
Will the higher costs of living be considered in my annual review ?
I am going to contact CCCS and ask them to look at their allowances in light of the recent hikes in day to day expenses.
A quick question , if I may, when my fixed rate mortgage ends in November , could I switch to interest only ?
If so , would I then use the difference to increase my IVA contributions ?
Have a good day , and thanks for all you do for myself and all your other clients.
Regards,

Casiquebrado

[MelanieGiles]

Yes, yes and yes!

[sblack]

Hi,
I agree with you. The guidelines should be reviewed on a regular basis. As you say things are going up by huge amounts and budgeting for that is very hard and if it continues then many people will no doubt be in a very difficult position. Something really does need to be done.

[sblack]

Does anyone know when the last review was?
This would help gauge the rise in the cost of living since.

[MelanieGiles]

May 2007 I believe.

[casiquebrado]

Thanks for the quick response Melanie.
How do you find such energy ?
You really are an example to us all.

Regards,

Bill.

[louisa.s]

One note that if you are finding the increase in your gas and water too much try ringing them and saying that you cannot afford £xx monthly payment but you can afford £xx and could you change to that and review it in say 6 months time. From past experience I have discovered that utility companies generally over estimate the monthly payment so you do a have a bit of a leaway.

Lou

[Adam Davies]

Hi
As your IVA is only a month old and under the new protocol your IP wll have the authority to reduce your payments by upto 15% without having to contact your creditors
Regards

[MelanieGiles]

That is a good point Andy - I wonder how many Supervisor's are allowing such reductions at present?