Hi Teo
We are in the process of proposing an IVA and I too worry that the "contingency" pot of £50 a month will not cover unexpected expenses/disasters etc I think you have to be realistic about what you can really afford to live on for five years, as it will seem like a hell of a long haul if you are struggling throughout.
We are waiting to see what our creditors think of our proposed monthly contributions, and if not accepted are going to seriously consider bankruptcy as we have very little equity in our house, and therefore unlikely to lose it.
We would like the IVA to be accepted, and pay back as much as we can, but we are not prepared to struggle either, and with several young children know that things crop up. I worked out that last year I spent £300+ on footwear alone for them (school shoes, sandals, trainers and wellies) and not a designer label in sight! If they get invited to friends' parties, which of course is a big deal when you are aged 9 or less, they can't go empty handed, and even limiting them to spending a couple of quid on a present, some months this can be £30 between them. They don't get pocket money, but we have not put forward costs for swimming lessons(which I think is a life skill not a luxury) Fortunately their gran pays for dancing, but without that help, there would be no spare money for them to carry on with hobbies, and part of me feels that it is mine and hubby's mess, not theirs. Two of them wanted to go to a football summer school this August, which would have cost about £150 between them, and we have said no. That was really hard, because they are too young to understand the reason "it's expensive"; our eldest said "just get the money from the cash point mummy!"
Of course the upside is that they may have a much better understanding and respect of money, and hopefully be less likely to end up in our position as adults.
Our long term goal is to clear the debt of course, and then the kids will be able to join in with any clubs or follow their interests as they wish. But I suspect we will have a few tears on the way if they aren't able to join their friends in summer play schemes and clubs!
It will be a tough five years.
Blue
Last edited by
BlueShoes on Sat Jun 30, 2007 10:15 pm, edited 1 time in total.
