So, I've entered "Extra Time". the final two payments are soon to be taken.
My main term has been completed and I am now just wating to finish the with the two payment breaks.
For those of you just starting out.. It is tough, I've had to turn down not one, but two excellent promotion opportunities! You will have to miss out on things - Holidays, expensive clothing, new cars etc. I know that some would have just been unlucky - business failed and this was the only way out.
However, for some, this will be the the financial education that you needed - a wake up call if you like. I know this is certainly how I see it now. I have a full understanding of what, when and how much is coming in, going out and needs to be saved. I have even started teaching the kids about it! To the point where my now 8 year old son saved all his Christmas, Birthday and other money knowing he could get what he wants in the end - he bought himself a tablet thing. Well chuffed for him.
In year one its all a bit of a blur, waiting for the confirmation, playing with the monthly amounts to see where you can save bits to give you something somewhere else.... Months where you want something, or even, it's the wife's big birthday and you can't take them away / get them that special gift. It hurts because it's you (me) that got in the mess and others are suffering indirectly / directly.
Year two comes along and it's the first review!! You make sure everything down to the last penny is accounted for and all necessary proff is scanned and attached to the email. "send" button pressed and you sit and wait. It might be 2 weeks, 3 weeks or even 4 weeks before you hear anything, the letter says "thank you for submitting all the required documents. Following our review, we deem that you are not able to increase you contributions any further" Phew! The rest of year two plods on by and you are already thinking of year three and how you can save some money. The blunt education is starting to bear fruit. Sandwiches are made the night before work as opposed to the Deli visit every day. Bang! You've made enough savings to take your wife out. Then the dishwasher breaks!! So, you throw it out and use the sink for the next 4 years!!!
Year three comes and again, the review letter drops at you door. You update the I&E reaise your a little better off and double check your workings.... Send everything in and wait. . . .
You're in the clear again for year and you know what your allowances are. the 10% contingency fund you setup at the begining is now looking healthy and will deal with a knock back you have from now on. You start looking at year 4 even though year 3 is only half way through. You know that you can make it work and the Asda cheese is replaced by Lidls and you don't even notice the difference. Bargain hunting is now a past time, people giving away old school uniform now excites you as it's another saving to add to the pot... You first holiday in three years in now a possibility. But then your cars breaks.. And its the call that no one wants to make - I need to prolong the agony. A 2 month payment break is agreed.
Year 4 starts with the review.... again, all the necessary info is passed on, you suspect a slight rise as you have been very proactive in work and got small promotion. You supervisor calls and discusses the increase in payments. it was going to be an extra £50 per month. You discuss, dismiss and declare everything you can think of to nibble into the £50.... Finally you agree £30 per month increase. the letter arrives and confirms! Extra £20 in the pot the holiday is on! Year four draws to a close, you're a dab hand at this now, second hand bikes that are as good as new provide big excitement at Christmas - your searching scouring and elbow grease have made for happy children.... The thoughtfully framed picture collage of your wife's nan who recently passed away goes down a treat - would you have though of this with money/credit available? Or would you have gone big and flash?
Year 5 comes along and you know that the review is again a success, no increase. However you know the "Equity Release" clause will sooe be Upon you... You panic, but I only thought it would be 5 years? Do I have equity? Will I have an extension?
www.iva.co.uk comes to rescue, many talanted IP's and experiened IVA'ers are there, in an instant to guide, advise and summarise.... you step back, breath and read the terms again.
"From month 48 and no later than month 54, you shall try and effect and remortgage of your interest in proprerty X...."
You get different peoples understanding of the term, how do I calculate equity? One does it one way, the other another.... You build up courage, expecting the worst outcome, and speak with your agreement provider. They clarify how and you breathe a sigh of relief... You now get your property valued, in an odd way pointing out all the bad bits and that its a forced and quick sale. "I'm probably looking to move abroad - quickly too" the estate agent, smiles and carrys on looking at everything, having probably heard the same story100's of times...
They finish and give you a value.... It's big, real big! In any other situation, you would surely be pleased.... but you are not. because you know a remortgage is not possible and another year of cut backs would be tough - the holiday may have to wait. Then he says that this is with all the imperfections corrected. the next figure is better, but still boarderline. They go, and send you their written report. You are ready to forward it on. You call up the Supervisor and confirm all the details, then they say....
"We have conducted our desktop review of your property and there is no way you are able to raise equity. This is due to you exceeding the 85% LTV". You say nothing, other than "oh, OK" "where does that leave me?" "you will recieve a letter in the post confirming that no further action needs be taken"
"Excellent, Thanks" you say.
All of a sudden, its on! The holiday can happen.... Months pass by, you are still paying everything you should, possibly a bit more when overtime comes around - you are taking no chances - you have come too far for that now.
You submit everything for the final time with confidence and a smile. You sit at the computer with your wife, pick the destination and pay the deposit. Life is returning to normal.
All the lessons, all the pain, its all been worth it. My children will know about this and I will help them to not make the mistakes that I have made - I promise.
So, I've entered "Extra Time". the final two payments are soon to be taken. The holiday is on and the Family will have a great Christmas...
Keep on going everyone, sorry for the long download and thanks to all the Professionals and IVA'ers for being there, even if it was to ask the same question 2 weeks apart....
Thank you, thank you all.
