This is all very new to me so please be gentle, I feel ashamed enough as it is in the predicament I've got myself into and that I've had to get help to try and fix it but please be gentle haha.
I'll not go into detail as to how I got myself into so much debt, but it got mostly bigger by putting debt on top of debt, paying one with the other and so forth.
The situation now is that I'm living with my parents and I have a couple of questions about expenditure and my yearly review and stuff as my referrer and IP gave me guidelines on spending but I'm concerned.
So I pay £300 a month to my parents which covers most things, my IP have given me around £200 for food but a lot of my food is just bought by my parents, sometimes I get my own sometimes I don't. I said to my referrer and IP that I mostly take my own food to work as I'm attempting to lose weight but they put my meals at work at around £30 a month which I know I'm nowhere near.
My concern is that what do I do with the income that I don't spend? I'm scared that if I save it up and either save it for big things like a car bill or whether I go away for a nice weekend I'll be essentially punished.
It's like my phone bill at the moment is £27 a month but my IP put £40 a month on the proposal as she said it would be accepted under the guidelines, I said I don't know how I feel about that but it's gone through as that so I don't know whether I'd get in any trouble for that?
Any advice would be welcomed.
I don't agree with wholesale manipulation of figures -- but a bit of tweaking here and there can be useful. It is better to account for spending that might reasonably occur, than to find yourself short in the future (prices for everything tend to only travel in one direction!).
Modest savings are allowed by most IP's, some actively encourage it as part of the whole rehab thing. An emergency fund is always useful.
For safety's sake I would put some in the Bank of Matress.
I was wondering how I got around the whole extra cash thing, I was thinking of 3rd bank account that I deposit cash in and just use that as a leisure/emergency/anything fund, or is the bank of mattress the only way? Like you say I don't want it to seem like I'm taking the biscuit but that's essentially what I'm doing with the manipulation of figures, I feel guilty for it but I just want a normal life back where I'm not worried about paying for food or fuel or anything like that. I mean as it stands I earn around £1700 a month and my debt payments are £1200 a month, my board to my parents is £300 a month which leaves me £200 for fuel and anything I might need in the month, and it's not a lot when I drive 50 miles a day for work.
r0bs0n wrote:So if something like the telephone/internet bill was budgeted for £40 a month on the expenditure and then after a year it was managed to be brought down to £20, would the IP then expect the contributions to go up by that £20, or is it not declared and the allowance stays as it is?
It depends on how creative they are with the new I&E. Once the allowances have been agreed they are not inspected with a magnifying glass and only glaring changes are looked at.
r0bs0n wrote:Would they question cash withdrawals at all? Say if I left enough in there to cover the direct debits and the withdrew the rest would they question that at all?
I doubt it. In the early days of my IVA I used to leave enough to cover the DDs etc and withdraw the rest in cash. This I distributed, according to my I&E into envelopes (then progressed to jars) and spent on the various items from there. Later on, as confidence grew, I did the same with the main DD spending left in one cashomnder account and all the rest transferred to a second cashminder account tp spend from. The method or second account was never questioned.
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