Ok so its review time, I have never done this before and a lot has changed in the past year, what with the increases in fuel food gas, etc etc, so not sure what to do.
Married 2 kids 12 & 15 1 dog.
My old inc/exp was
For IVA £286 although I paid £300 the first few months then £287 since, I havent missed any payments.
With changes in tax credits and child benefit and a small pay rise we are as little better off now.
Income is now £1967.
Mortage 670 450
C Tax 95 99
Contents ins 24 24
Life ins 25 28
Gas 50 65
Elec 43 43
Water 35 35
Telephone 0 50
Tv Licence 12 12
Mobile 30 0
Road tax 15 17
Car ins 15 24
Fuel 100 130
Food 346 365
Clothing 30 30
School dins 48 48
Prescrips 18 22
So as you can see I am quite a bit up on disposable income, I dont mind paying a little extra in to the IVA but I must be undercutting my figures somwehere.
The biggest change was to my mortgage as The ip told me to change it to interest only as it would free up some cash , I did this but it didnt happen until the IVA was approved at £287.
I was not allowed anything for mot or repairs to the car etc and in the last year alone we have spent over £600 on it.Gas has gone up silly amounts plus we are penalised as we have a prepay meter. Fuel has gone up, some weeks we have to put £40 plus pounds in it, we have an extra journey as well as one of our children has changed schools due to special needs.
We realy struggle every week but these figures look like we have about £500 a month to play with.
All my numbers are calendar monthly and if anyone has any input it would be greatly appreciated.
Thanks to all.
Hi there. If your fuel has risen which we all know it has then put the rise on. Definately put down the added journey for your child. Put down any rise you have be it small or not.
Goulda I was not allowed an emergency fund or anything for haircuts, it varies from company to company, we were allowed a couple of things that I know others quite often are not, so it sort of evens out.
All the best.
How ridiculous not to allow anything for car maintenance. How on earth did your IP expect you to pay for the MOT and an annual service?
"The ip told me to change it to interest only as it would free up some cash" - this is also a dangerous move to make if you have no method of repaying the mortgage in the future.
It definately looks as if you could afford to increase your payments, and your IP will let you know how much they feel is required, however you do need to ensure that you leave sufficient for you bills and some contingency.
I myself majorly stressed about my first review. It took almost the first full year for me to adjust to budgeting with what I had left each month. I didn’t declare my overtime first couple of months and ended up putting off phoning them for the worry that I'd have to give them money I didn't have. I ended up the full year without declaring my overtime. They finally emailed me for the review. Everything was given to me as in outgoings and income. All I had to do is update new value of any changes to each amount. They asked for 12 months pay slips but no bank statements to check my actual outgoings. I nervously waited for bad news then eventually had email back saying I owed roughly £1900. I had option to pay it then or add it to my monthly payment over 48 months. That's what I did and now declare my overtime which most months I pay them a lot more than my mortgage. But I don't think I could survive without being able to have half of my overtime money.
Another thing I did at first review was declare £200 a month for child care. They needed proof from bank statement and a signed child care contract which I had to get written up as our child carer is a woman we know who is a Foster carer who agreed to help. I do wonder now though that my next review, the extra £47 a month im paying for arrears will count as an expense.