Would large cash withdrawals each payday be bad for my assessment ?

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cakie90
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by cakie90 » Thu Dec 14, 2017 6:05 pm
I have literally just signed my first ever IVA and I have to say I am really nervous. As someone who has used spreadsheets to calculate monthly outgoings, and ticked them off by looking at bank statements, having to change habits into categories of 'living expenses' is terrifying!
I understand that budgeting is a vital part, and so for me, I feel like aside from direct debits, I would want to make a trip to the bank every payday and withdraw the amounts calculated in my expenditure breakdown for things like hobbies/food/health/travel etc.
- Would larger cash withdrawls be a bad idea when it comes to my assessment?

If within the withdrawn amount i got £30 to cover cat food etc for the month, and only spent £20, would I have to provide a receipt for this or be in trouble if I saved/spent that £10??
Apologies I am such a novice!!

Thanks guys
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Foggy
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by Foggy » Thu Dec 14, 2017 6:24 pm
You won't have to provide detailed breakdowns of the smaller expenses or the monthly food shop. What I did, as well as several others, was to open twin accounts ( mine were co-op cashminders). My salary was paid into the "main" account, an amount to cover the DD's etc, was left in that account and the rest transferred to a "slush" account, from which I spent on shopping and the smaller manual bills. It took me most of the first year into my IVA to actually leave much in the slush account ... I used to draw out the shopping allowance for the month in cash as divide it between several envelopes for each week -- taking cash only to the shops each week. As I said -- it was a while before I trusted myself with a debit card --- actual cash made things seem much more "real".
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jonathah
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by jonathah » Thu Dec 14, 2017 9:10 pm
I don't think your IP will mind but if you do your cat out of a tenner a month....well you know, cats can make life difficult.
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luluj
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by luluj » Fri Dec 15, 2017 5:17 am
I worked in a monthly cash withdrawal and then put it into different pots for fuel, food, clothing eyc ... whatever was left each month i would put into am envelope towards xmas or a weekend away.

Your allowances are your allowances how you manage them is your call .... your IP will see that cash goes out but then no payments for food etc ... so no questions will be asked
cakie90
Posts: 4
by cakie90 » Fri Dec 15, 2017 8:46 am
Foggy wrote:
You won't have to provide detailed breakdowns of the smaller expenses or the monthly food shop. What I did, as well as several others, was to open twin accounts ( mine were co-op cashminders). My salary was paid into the "main" account, an amount to cover the DD's etc, was left in that account and the rest transferred to a "slush" account, from which I spent on shopping and the smaller manual bills. It took me most of the first year into my IVA to actually leave much in the slush account ... I used to draw out the shopping allowance for the month in cash as divide it between several envelopes for each week -- taking cash only to the shops each week. As I said -- it was a while before I trusted myself with a debit card --- actual cash made things seem much more "real".


That's really helpful, thank you. Only thing I am nervous of is opening another bank account.. Would this 'slush' account be monitored?
I'm worried that if I really budget to deliberately save, say, £100 out of my £200 food allowance for example, every month, that this would have to be put into the IVA to pay more of the debt!

Also will I be able to open another bank account? Obviously there would be no overdraft facility or anything - is there a certain type of account you would reccommend I looked at?

Thanks in advance - i'm so happy this forum is here!!
cakie90
Posts: 4
by cakie90 » Fri Dec 15, 2017 8:48 am
jonathah wrote:
I don't think your IP will mind but if you do your cat out of a tenner a month....well you know, cats can make life difficult.


Haha, the IP won't but pretty sure my cat wouldn't be happy! Maybe I need to hide the expenditure breakdown from her.... :lol:
cakie90
Posts: 4
by cakie90 » Fri Dec 15, 2017 8:51 am
luluj wrote:
I worked in a monthly cash withdrawal and then put it into different pots for fuel, food, clothing eyc ... whatever was left each month i would put into am envelope towards xmas or a weekend away.

Your allowances are your allowances how you manage them is your call .... your IP will see that cash goes out but then no payments for food etc ... so no questions will be asked


That puts things a bit more in perspective, thanks!
So Did you withdraw everything that wasn't a direct debit? For me that would be a large amount over £300. I see your point of as long as there aren't transsactions on my account showing a food shop as well as that withdrawl everything would be fine.

I feel like I am waiting for a catch with an IVA.. I know there are obviously downsides but I was being absolutely eaten alive with interest and despite having these worries and it taking a while for me to get my head around the whole thing, the relief is really quite something!!
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Foggy
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by Foggy » Fri Dec 15, 2017 8:57 am
cakie90 wrote:
Foggy wrote:
You won't have to provide detailed breakdowns of the smaller expenses or the monthly food shop. What I did, as well as several others, was to open twin accounts ( mine were co-op cashminders). My salary was paid into the "main" account, an amount to cover the DD's etc, was left in that account and the rest transferred to a "slush" account, from which I spent on shopping and the smaller manual bills. It took me most of the first year into my IVA to actually leave much in the slush account ... I used to draw out the shopping allowance for the month in cash as divide it between several envelopes for each week -- taking cash only to the shops each week. As I said -- it was a while before I trusted myself with a debit card --- actual cash made things seem much more "real".


That's really helpful, thank you. Only thing I am nervous of is opening another bank account.. Would this 'slush' account be monitored?
I'm worried that if I really budget to deliberately save, say, £100 out of my £200 food allowance for example, every month, that this would have to be put into the IVA to pay more of the debt!

Also will I be able to open another bank account? Obviously there would be no overdraft facility or anything - is there a certain type of account you would reccommend I looked at?

Thanks in advance - i'm so happy this forum is here!!



If you saved half the food allowance each month the creditors would catch on and consider that allowance too generous -- so tread carefully with that one. Of course, if you draw out the housekeeping allowance in cash each month, they are not going to be aware of where it goes --- if you decide to live on lidl beans for the month and save a chunk --- the bank of mattress is as good as any.

My accounts were co-op cashminder accounts and I had no problems. My IP at the time never asked for bank statements at all, so the slush account was never looked at.
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