How quick does 5 years go?

[poppy]

I am 9 months into my IVA and can't imagine getting thorough the next 4 years 3 months on such a tight budget. I'm really struggling! For those who have been through it does it go quickly?

Thank you.

[MelanieGiles]

Hi Poppy

Is there any reason why you are struggling with the payments - were they set too high at the beginning by either your IP or the creditors? You may be able to negotiate a reduction in payments with the IP, so I would look at this at an early stage rather than having a miserable time for the next four years.

[pixie]

Hi Poppy
I don't know about 5 years I'm at the same stage as you, just made the 10th payment. I thought 5 years was a life sentence when it was first approved! This time last year I couldn't see a way out and was at rock bottom. This year has flown by and 4 years sounds much better than 5!
The budget is tight but thanks to a promotion and being able to keep some of my payrise, the last few months have been better than the first few.
When your annual reveiw comes up, make sure you list all increases in your expenses and hopefully the next year won't be as hard.
I'm finding life in an IVA much better than before strangely enough! It's much less stressful.

[Reviva UK]

May also be good to look at the terms of the IVA agreement to see how it relates to additional hours worked / overtime 2nd job etc.

There are basically 3 ways of staying in the IVA and making it work if you are struggling.

Increase your income ( see above)
Reduce your expenditure by really careful budgeting and review of utilities & other costs ( housing, travel entertainment etc)
Finally having a conversation directly with the IP to discus the situation and see how they can help with a payment holiday, modification, reduction in payment or a reduction in contribtion but a slightly extended IVA to compensate for the reduced monthly £.

After exhausting all of these then if is still doesn't work you may want to explore other avenues. However as you have done so well to get this far it is certainly worth really checking out the above first.

[james.c]

I have now made 13 payments, 47 left.

It as amazed me how quick the time as flown already.

I think the thing is here, its going to be tight money wise, but it will be lets be honest none of us have had to live on a budget before, if we had we wouldnt be in this mess.

Look at this way -

Disadvantages -

1 - Money's tight for 5 years.

Advantages -

1 - I bet most people were in to debt for more than 5 years, and you would be in debt for more than another 5 years if not eneterted in to an IVA

2 - No stress from companies chasing you for money.

3 - Some of the debt written off, interest and charges stopped.

4 - When the IVA as finished in 5 years, i more year and it is wiped of your credit score

[Shining]

I say 60 months rather than 5yrs for some reason it's not so long!

My husband and I were talking about this yesterday actually and saying 2nd payment gone and 58 to go, this time next year we'll be saying 46 etc., until we'd gone through it all down to it being paid off. I'm taking one month at a time and hopefully things will go smoothly but who knows what is around the corner...none of us.

[JuliaE]

Is that true about the wiping out your bad credit James? I thought that after your five year IVA you had to wait another 6 years for it to your credit file

[Adam Davies]

Hi
It comes off your credit file six years after it started.So for a five year IVA your credit file will be clean a year after your IVA finishes.
Regards

[JuliaE]

Well that makes me feel a little better. 11 yearswas very hard to swallow. but if I did the crime, I do the time.