life and finances AFTER an IVA

[bridgey]

Hi,

Would be interested in hearing from you fine people who have been through the IVA life and come out the other side.

How has your life changed, what is your view on credit now? And what changes have you made? Have you taken out loans or CC or have you steered well clear?

Just interested in how the process has changed people (+/-).

[tigger]

Hi,

Over 2 years since end of IVA. We still budget strictly and monitor income/expenditure to the nth degree – some old IVA habits never die! Credit ratings normalised – I have a standard cc for emergencies and my wife has a car loan (no need or intention of acquiring any other credit). We also switched our Co-op cashminder account last month for a Halifax reward account without any issues.

Although the IVA was really good thing for us, we wouldn’t like to repeat the process

[Shining]

Hi, I'm almost one year out of the IVA, life for me is wonderful. We still budget for everything and my spreadsheet and online banking are two of my best friends. I can become a bit obsessive but try and curb that. I'm looking forward to February when that IVA clears from my credit files.

I have some savings and am loathe to spend them, need a new car but not ready to take the credit step just yet...maybe one day though as I never say never.

I do have a Vanquis and Aqua credit card that I put a small purchase on and clear in full each month. Will try for a full account (bank) after February when files are cleared up and a main bank credit card and get rid of the other two. All in all it's all positive for us.

With respect to my relationship with my husband we're stronger now than ever as money nearly split us up and the IVA brought us back together. x

[orange]

We out of iva 2years ,found it difficult to get remortgage have couple of cc cards ,life's better but sometimes we get stressed about money ,other times we reflect on how much we lived on ,or didn't has the case was ,our iva was always set too high still won't be going on that flight again

[luluj]

Three years since our final payment. Only last month did I decide I was ready for a credit card again, and got given a credit level of £3500 with Barclays ... Had it reduced straightaway to £1000 ! Use it once a month for a food shop otherwise it is emergency only ....
We have taken out a mortgage and got a HP agreement for one of our vehicles ....
We manage our day to day living by using the budgeting skills we learnt during the IVA .... Occasionally we have a little splurge but only when we have the money in the account !
We have savings in fixed term bonds and premium bonds and one account with sufficient for a boiler replacement / set of new tyres etc in it ....
I panic when our current account goes overdrawn .... Doesn't happen every month and only by £100 tops if that

Like Lesley my marriage was iffy before our IVA, desperate for a baby but it didn't happen - went through IVA, which finished early due to unexpected inheritance .. Learnt so much in budgeting and living within means ..... Proud of how we dealt with things and now a strong relationship with no financial woes !

[kev59]

Had my f&f meeting a year ago this month. Due to losing my job and not being able to keep the payments up. not got any loans or cc out in my name and wont. G/F would not let me any way.
IVA will be showing on my c/file for the next 4 years, but I wont be getting into debt again, so dont worry about that.
saving up to get married, which we have put back a year, so we can have all we wont. (per IVA I know how I would have been paid for it)
But not any more. We always think before we spend (g/f always has).
We moved in together after selling my flat to pay F&F payment, leaving enough to start life again.
we now have a wonderful debt free life together.

[dawn20]

hi there well ive been out of iva 2 years this month and finally nwent into my bank nat west and wanted to know if I could have a small overdraft in case I do go overdrawn by a small amount and to my surprise I was told yes and I asked how small it was £50 would have liked it smaller say £20 but it was nice to be told credit rating good at a 5 which I was told and did I want a credit card which I politly declined quite happy to have the overdraft to save paying fees if I do go over by £2/3 and hope really I never have to use it so just a frugal safety net

[kazzafunk]

I think on the whole - it is wonderful to end the IVA. For us life is tough - our IVA ended early when I was medically retired. The pension I am on is low and we are still living like we are in an IVA.

However - hubby comes home with horror stories about people at work moaning about their debt - I only ever owe a couple of hundred on the Vanquis and 9 times out of 10 we can clear it within the interest free period.

Taking the IVA gave me the opportunity to be able to take medical retirement very young (47) - I could not have considered it with the debt we had.

I have learnt so many lessons over the last 3 years and will never forget the first conversation I had with Mike Peoples - think it may have saved my life (without sounding too dramatic).

[Hair_bobbles]

Oddly enough pre iva, I knew exactly how much debt we had, who it was with & what the overall debt payment was every month.
Although I might bang on about " cash is king" ,,I have always used cash (since leaving school at 16)& still use cash to budget my housekeeping.

What happened with us is that my hubby is hopeless with money, with him spending it ( or frittering it) leaving me short & juggling the financial balls as it were:

Since we entered into the iva,,he has had no access to any money. Some might think that controlling or restrictive but he has happily handed all the financial responsibility over to me.

When I met my husband he had debt. I didn't have any money but I didn't have debt.

I do not want to be in debt ever again,,the idea of it makes my blood run cold. We've managed for 5 & 1/2 years without a credit card- we don't need one now.

While we were going through the iva, I had an idealistic notion of what it would be like to be free of it ,,,but in reality life outside of iva is no different in it.
Money is still the same the bills are still to be paid & the juggling act continues- the only real difference being there is now some spare cash every month to try & save....
So far since the last payment in may,we have had several things to shell out for,,,,but at least we have done it with the money we have got.

The only debt I was prepared to take on was a mortgage.

I really did believe that once that last iva payment went out,,we could start saving for a deposit on a house. the reality is its a pipe dream. Very disheartening when you have struggled through the iva with that goal in mind at the end of it.

I wish we had gone bankrupt & got the whole thing over & done with a lot quicker-

maybe not being in a position to take on a mortgage is a good thing?

The iva has taught me that you have nothing to fall back on apart from yourself: there is no magic fairy godmother credit card to bail you out :

You have to get it right.

[Foggy]

I finished paying my IVA a few months ago (awaiting that certificate now). I still budget and live as though in an IVA, which is good, really, as I have little spare cash in any case and, if nothing else, the IVA has taught me a new respect for money and budgeting with it.

I think, if not for the current government imposed "austerity" (unless you are an MP), those of us out the other side might have seen a small, year on year, improvement. However, in real terms income has fallen against rising expenditure for all of us, regardless of financial stability ( except MPs).

However .... no credit card bills arriving every month (our postie now walks without the hunch), the only pestering phone calls I get are from PPI claims companies, and I can be as rude as I like when answering, and Christmas, although a modest affair (and, let's face it, when the creditors were paying, we did tend to go OTT)is paid for already

Happy(ish) Days

[12 months to go]

Hi Bridgey

i made my last payment in April 2012 & got my CC in November last year

initially cautious in taking credit , i upgraded my account in Feb this year & took a credit card from my bank. I owe £2500 on this . as i paid for 2 hols on it, but have been paying a couple of hundred pounds each month, but i do have almost this much saved up, which i will use to clear the balance when my 12 months in free is up, as leaving the money in my current acc pays 5% interest so it makes more sense doing this.

I borrowed £3500 to replace my boiler last month, credit approved straight away and i intend to pay additional payments by DD each month to clear it before the term.

its nice to have spare money, however the 5+ yrs of scrimping & saving pennies, as for most of the time i was well & truly skint, has taught me to really value the meaning of money. Ive bought more clothes this last 10 months than i bought in the previous 5 years, as i bought virtually no new clothes whilst in my IVA; i had to make do, it was either food or new clothes

The plus side now is that most of my wage is mine , pre-iva i had almost no wage left once i had paid min payments on all my credit commitments

Hope this gives hope to forum members either mid IVA or just starting out.

[bridgey]

Thanks for all the replies and honesty. It is nice to know that the good habits that have been picked up throughout the term are sticking.

We are 5 months in, and life isn't easy - but it's not supposed to be easy, eh.

We're always (ALWAYS!) down to our last few pound come the day before payday. This month is no different.... 18 days to go, and £100 left in the account. We've done the majority of the food shopping, petrol needs buying once more - then it's Christmas presents... somehow.

It is a relief knowing that, come 4.5 years time, we will be free and able to 'relax' a little.

My only concern is, as mentioned above, being able to pay for the emergencies without the fallback of a CC. If we need emergency housework, boiler, car etc - we'll be screwed.

We haven't told any of our family - which i think is common on here - and dont want to either... they'll only worry (more than they already do).

Thinking back - pre 1st baby (2nd due any day) and with the Wife working - it's incredible to even think we could survive losing £30k+ per year in salary (wife looking after kids).... some day, when she's back at work, we'll 'live like kings'

[Hair_bobbles]

Hi Bridgey,,

Just as a side thought- apparently you can take a payment break to cover dire emergencies but this break time will be added onto the end of the iva.

& I didn't tell anyone about the iva either.,, just couldn't face it.

I can't say if the iva will get easier but you will get used to it & the key for me was to squirrel money away into a savings pot so I had some money to fall back on. That actually paid for our camping holidays every year. We were already " campers before we entered into the iva so had all the gear.

I'd rather have a little holiday ( albeit in a tent) with my kids more than anything else. So much emphasis is placed on Xmas & birthdays to buy presents( that actually they don't really need or particularly want,) that it's easy to lose sight of what's truly important - Spending time with your kids as a family & enjoying spending time together.
When other family members send money for Xmas, we save it up & use it in the summer hols . in the summer hols I've spent many an hour having icy cold buckets of water thrown all over me while being chased up & down the beach by my tribe & have had loads of fun being buried in the sand & building sandcastles,,rockpooling, walking, chillaxing & playing & we havn't had to spend anything while doing that!!

All that to look forward to made the iva go quicker & I am still saving in a pot for next years summer camping break....

Congrats on the baby,,...