The hardest year

[ivas4us]

Just out of curiosity is the first year the hardest in the IVA. The reason I ask is there are a lot of posts that say tht at the yearly review expenditure goes up the same income and the monthly payment remains the same.

[kallis3]

I think any year can be the hardest - depends what things happen to you over time.

The big thing with the first year is learning to live within a budget without relying on credit at all.

At the review in any year, if your income has gone up, and your expenditure has also gone up then your payments will probably remain the same.

Ours did.

[ivas4us]

hank you Jan. Just wandering if peoples expenditure increased as it was very tight in the first place and therefore has income increases it gives you the ability to increase the expenditure allowances to help the budget a bit.

[ivas4us]

or even Thank you

[kallis3]

Your expenditure will go up, utility bills and council tax rise every year, this is why it is important to have a review every year.

You should always put down exactly what you spend.

[ivas4us]

Yes Jan Got it now. I remember years ago when I worked for the local authourity i had my rent and council tax stopped out of my pay which increased more each year than the pay rise so I actually received less money.

[newbeginings]

Most pay rises are generally cost of living increases of say 3% but as the last year has shown food has rocketed petrol went of the scale for a while, council taxes went up the list goes on. I am not in my IVA yet but everything I have read indicated that the annual review is nothing to fear, it is a process to ensure that the IVA remains fair to all parties and also importantly affordable to the individual. A good IP company will never allow a client to be in fear of the annual review.

[kallis3]

I was worried about ours, but it was a mere formality basically. I was even allowed to keep all of the back pay I received from last years payrise.

[flow13]

I was always worried about our payments going up but we have done our 3rd review now and they have stayed the same.

[Max]

Paul - iva4us - you may know of this. Our local paper has picked up a rumour that our Local Authority employees get a discount off their community charge! I hope that is not right. The community charge payers have already bought the Chief Executive a brand new top of range Lexus.

[kallis3]

I'd be surprised if they were - unless they live on their own of course!

[luluj]

I think the first is the most rewarding let alone the hardest - it is in this first 12 months to appreciate the finer things in life, learn tolive well within a budget, and learn to realise that the simplest of things in life can be fun and rewarding !

Boy am I going to look forward to 2012 when I can have a treat or two - but all in moderation and certainly not on the never never !!!

[kallis3]

I'm just glad that I have one year out of the way - one step closer to financial freedom (apart from the mortgage!)

As I can retire shortly after ours finishes, the first thing on the agenda then is a nice expensive, exotic holiday!

[Shining]

I've not long gone through my first annual review, I was a right grouch when it first arrived and panic set in! Jan talked me down and I filled it in honestly and accurately putting down increases and providing evidence of increases etc., All went smoothly and no increase in payment.

[kallis3]

I'm glad I was able to help Lesley.