ok - so I've don my research and now know what an

[apple2]

IVA is and abt budgets etc - however, I would like to know from people who are already on an IVA - what exact change does this make to your lifestyle?
For example, I have read quite a few comments about how hard it is sticking to a budget for 5 years - whilst I'm sure that is the case - for me there is no budget for food, clothes etc as it is currently going to creditors, each and every penny every single month. I then draw money off credit card to buy food! So, surely even though it is tough my life will improve hugely?
Is that right?
Can you please give me your experiences and advise exactly whatthis will mean to me?

[Kazzy E]

Hi apple2,

Welcome to the forum, it is a great place for loads of help and advice by 'real' people with 'real' problems who are in the same boat as you.

If it is any help, I have not had my IVA approved yet as my paperwork was only submitted last month, so I am no real expert. However, once I had submitted my paperwork, I stopped paying my creditors and am living to the expenditure budget that was agreed in my initial phone call and is based on recommended allowances.

I have had a budget for things I never even considered when I was living on cc's etc. I had no real money for food as in the end, even that went on cards. Dental and prescription provision, car tax etc was never saved for, but now I have a 'pot' for all things that I need to consider and have used cash this month for food and my fuel. I must say it feels really good and like I say, I haven't even been approved yet, so I feel this is a taster of IVA life.

Some people may disagree with me, but I have taken the bull by the horns so to speak and have realised that this is how it is going to be for the next five years. I don't have a choice in the matter, it's this or a life of sinking deeper and deeper and I know which one I would rather choose. I am under no illusion that it isn't going to be tough and so it should be. I need the reigns to be pulled in and I am looking forward to some control in my life. So assuming that I am approved, I am looking at this as a positive venture to make some major changes in the way I think about money; at the same time paying back a chunk of the money which I rightfully owe to my creditors.

At the end of the five years, I expect I will have learnt a very hard lesson, and hopefully it will make me a stronger and better person for it. The relief in appointing Melanie for me was immense - a problem shared, so fingers crossed we will have success. Good luck in whatever you choose to do, it won't be an easy ride, but I am sure you will choose the best option for you and will receive the best advice available to you.

Best of luck, Kazzy x

[Moneystinks]

Hi Apple

I too am not yet in IVA Melanie Giles and her team are currently trying to sort out my mess.

I have found that it is strange and scary knowing that what is in the bank is IT. If you spend more than you should or something unexpected goes out then you have no comfort blanket (credit) to fall back on. BUT having said that overal it is GREAT [:D]. It is nice to know that the money in the bank is yours to do what you want with and that you are still paying to your creditors. [:D]

Good luck and best wishes.

X

We started out journey in April and have not yet had our creditors meeting. The 'spare' money (the bit we will hopefully pay into IVA) we have sved some for contingency and we have had a few unexpected bills ie car tax, various items have commited suicide and had to be replaced etc.

Yes, I feel it will be difficult, and yes people do struggle but they all get through it, and when it is particulary bad they post on here [:D]

[Kazzy E]

Here Here Marie, you are at the exact same stage as me by the sound of it. Good luck to you, all will be fine, I'm sure. Kazzy x

[Moneystinks]

We are just waiting for Melanie to put the finishing touches on our proposal, thenwe need to sign and then wait for a meeting.

I hope everything goes well for you too.

XX

[MelanieGiles]

I'm doing it tomorrow - after I have taken my Mum shopping!

[Moneystinks]

Thanks Melanie it was n't a hint, but thanks anyway....

Enjoy your shopping trip. X

[:D]

[aguise]

Hi apple
We have found our iva to be life changing.Like you we were just scraping by every month to get the minimum payments made, and due to that we suffered as if there wasnt enough to shop we went without, our credit was at its limit fo quite a while pre iva. We now think about everything that we buy or pay for, if we save a little then it goes to our contingency fund for those little extras or for emergencys. No it isnt always easy , this week I was down to my last ten pounds, but we managed. We all share tips on saving money at times and any ideas we have. I scour ebay and the internet when we need anything, clothes I tend to buy in the sales. Food I tend to internet shop as you can see the offers and dont buy stuff because you see it the shelf, but in the least check the offers before I go.
Anyway I will stop rambling. We manage, our quality of life is actually better than pre iva because we have allowances to cover our needs.

All the best
Ang

[Soulgrowth]

Hi apple ... when I was putting my IVA together a couple of years ago now I found it to be a very refreshing experience to really gain control of my finances, have a new fresh bank account and really being aware of exactly what I was spending my money on. As I have said in another post, since this I have become REALLY mean and always think twice now about any money I might spend!

In Andy's presentation at the debt debate he spoke about 'rehabilitation' of our spending habits ... and I think this was a really good term to use.

Good luck ... you are making the right decision and will be pleased you did so [:)]

Debbie

[angela18]

we have been in ours since Apr1l 08. we haven't experienced much up to yet as nothing to big has happened. skint this month as have been camping and had a couple of trips to vets.. boosters etc which aren't covered by insurance. next month will be trying as i have car tax and hubbys mot due.. also school holidays..

better than no spare cash and living on credit.. supposed to be going to frugal friends in july, but will have to hold off a while as may not have alot of spare cash.. but a leson to be learnt.. you live within your means

[plasticdaft]

My mot is due next month and the 2 cars tax is due end of july so things are going to be tight. The spare cash we had put away for mot was used for little dog at the vets this week,so the tin is empty,it was litteraly a tin,a cleaned out bean can for us to put spare money into as we havent set up any kind of savings type account,although we are looking at a pre paid credit card thingymabob.

Money is tight under IVA/TD but it was tighter before was it not,when we were all paying a fortune in interest to multiple creditors without actually reducing the debts.

Happy Days!!

[michael.t47]

Kazzy
I could not have wrote that better, my thoughts entirely. we are currently getting all paperwork together etc. Have sent some off and more to send mon morning.

[angela18]

we have learnt.. just told friends can't go camping in july with them, as we can't afford it.. bit disappointing but on the other hand feels good!! when i watch them doing things I wonder how they are paying for stuff.. only on same salaries as us.. scary really!!

[TheMatrix]

Yep, I was doing what you were doing. Robbing Peter to pay Paul and using credit to do it. Trouble is it doesn't really solve anything does it, the debt at the end of the day just gets bigger and bigger, and you've used up all your income and added to your debt too.

The good thing about being in a IVA is that all the credit stops, the interest stops, and you only pay back what you can afford with a budget set up and reviewed every year with your IP.

The horrid calls stop, the creditor letters stop which is great. But, there has to be a but... the marketing letters will soon start arriving as your name, address and date of birth end up on the Identity Theft goldmine database otherwise known as the insolvency register.

I'm into my 3rd year now and well there have been times where I've really struggled to keep it together, but I've managed it so far and I'm determined to get through the 5 years.

[Shining]

Our IVA was accepted Feb 08, we were borrowing off Peter to pay Paul etc., as were a lot of us. In an IVA I find the stress factor has been removed, I pay my IVA 28th of every month (get paid 27th) and it's now up to us to budget etc., I've had a rough start to my IVA with lots going wrong, but I'll be honest and say although not easy for me I can 110% say it was the right decision for me and I will do my utmost to make this work, (touching wood) the past few weeks things have settled down for me (see my blog) and although I have practically no contingency and the car tax is due July and the MOT in August, I'll survive, I've learnt to be more frugal some weeks with shopping to give myself and family a treat now'n'again. You can have treats (i.e a chinese) and when you do you'll know it's your money paying for them and enjoy and appreciate them more. My IVA has also taught my daughter the value of money, she is fourteen (going on 24) and now has a part-time job (cleaning), her elder sister is going to a wedding today so to save elder sister money, 14 yr old has done her hair and make up and I must say a good job was done and elder daughter gave her £10. Although she doesn't know about the IVA she does know and understand that due to financial difficulties things are going to be very tight from now on. Life for us hasn't been that bad so far, at one point I personally felt that if things kept going wrong my IVA would fail, but my IP (Melanie) kept me sane and admittedly I'm one month in arrears so soon in but I'll repay that by 1st anniversary hopefully. All the best to you whatever you decide, just make sure you know 100% it's the right decision for you.