Tips on setting your IVA budget
Setting the correct IVA budget is crucial.
If you start out on a 5 year repayment arrangement with an unrealistic IVA budget there's going to be just one out come, and that's IVA payment problems.
Setting Your IVA Budget
Your IVA should be constructed around your needs and there should be ample allowance made for each element of your expenditure, inline with your reasonable monthly outgoings.
Obviously, the amount of actual allowances that you'll need to off-set against your income will depend on your personal circumstances. For instance, whether you're renting or buying your home, whether you're single or have a family to support, whether you have a vehicle or use public transport instead and so on.
When your IVA budget is being put together, it's really important that you're satisfied that realistic allowances are being set aside. If there's any inaccuracy with your allocations, particularly if they're all on the low side, you might experience payment problems during the term of your IVA.
To ensure your IVA budget is accurate you should make a list of everything you spend money on each month.
Keep the figures as accurate as possible and try not to exaggerate nor underestimate them.
Make sure you cover all your expenditure, listing not just the basics like food, transport, mortgage or rent and utilities bills, but also allow for incidental costs, including personal costs like hair-dressing.
Finally, make sure your IVA budget has a contingency allowance added to it, to cover unexpected costs.
Most Insolvency Practitioners will insist that the contingency allowance is included as it strengthens the IVA budget and protects the IVA against failure.
With regard to the number of telephone calls we receives each day relating to IVA budgeting problems, we urge you call 0800 088 7503 to discuss your IVA budget before you commit yourself to any payments.
Calls are free and confidential and could save your IVA from hitting budget problems in the future.
Professional IVA Advice
By consulting with an IVA company, such as My IVA Adviser, as soon as you recognise you have a problem, you'll have time to better understand your options whilst retaining control of your situation.
There's no charge for the consultation, there's no obligation to act on our advice and your enquiry will be held in the strictest confidence.
If you would like to discuss your circumstances with one of the team please call 0800 088 7503 or, alternatively, complete this form and one of our advisers will call you at your preferred time.