Travel Fares in London have risen since 2008, food shopping has risen dramatically. Cleaning materials seem to cost the earth. Petrol has risen a heck of a lot, outrageously so in fact. Pretty much all the NHS Dentists have vanished locally meaning higher prices. Fact that it is almost impossible to buy a place in the current market due to the creit crunch and huge deposits being asked more means rent is higher because Home Owners know people will have to pay it or be on the streets. Lots of things have gone up our financial climate changes significantly every year and to keep figures 2 years out of date is bizarre to say the least.
It is not just guidelines from 2008. We were giving similar allowances for housekeeping in 1998 and the bulk of IVAs ran their course without the need for constant payment breaks, variation and failures.
Mortgage rates may have come down but any of those savings are demanded by creditors and do not affect those who rent anyway. In addition, the inflation rate reflects housing costs which have reduced which is one of the reasons the CCCS have not put up the guidelines[or so they say].
Prices have gone up dramatically in the last few years on the most staple of foods never mind heating, lighting, travel etc. I agree with Dave.
As an aside we had a client recently who we interviewed, completed an income and expenditure and proposed an IVA. Creditors at the meeting demanded an uplift and the client was uncomfortable with the increase. He spoke to the CCCS who stated he could never afford to live on the I&E in our original proposal yet it was based on THEIR GUIDELINES. They recommended a long term DMP but luckily we got the uplift removed and the client is now in the protection of an IVA.
I think we could all point to many areas of our expenditure that have increased substantially since to 2008. The current inflation figures confirm this.
It seems crazy that the figures aren't reviewed annually.
Andrew Graveson
Bright Oak Ltd
UK Debt Management Company
Website: www.brightoak.co.uk
Further, one may assume that the guidelines from 2008 were more than likely produced using data gleaned from earlier than that.
I make no comment as to the rights and wrongs, and everyone is entitled to their own opinion, and as you say interpretation may well be wide ranging on this, but I do feel that CCCS are there to be shot at on this issue and I repeat that, in my opinion, they don't handle it very well.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
This subject some what annoys me in my experience had the guidelines been in place I might of avoided entering an impossible expenditure of 270 for food & household goods for a family of 4 back in 2008 which I was lead to believe this was the average family living for 4 which later became very clear it was not. It was changed to 295 for the start of our IVA which was very hard to cope with. We are now 2 years on n just coping with 400 allowance a month (which only came into effect of a review 5 months ago) n stil struggling - children grow n therefor need more food to grow!
I have the guidlines and would never push them to the limit for my own game. I have had reviews to help us increase our expenditure but only because we have sincerely struggled n continue to do so. But the guidelines have been used by the IVA company (fair enough) but we have not pushed the limits & even been a fair amount below them.
My children were 3 & 5 when we started our IVA & one thing I think should of been considered was school dinners, school trips, out of school activities (swimming, football) & school uniforms as a allowance - something we are still continue to struggle with. I dont mind suffering & I give e very spare penny to my boys, but I still have to say no to areas that I should not have too, they should not have to suffer.
Final IVA payment made in April 2013, never ever thought we could do it or get through it but we did! X
An IVA.co.uk Mentor is someone sharing from their experiences of dealing with debt
Thank you for that link I will take a look at it out of interest.
Alot has changed for me personally in our IVA & we were fortunate to have our IP/IVA company understand our struggles & allow small pay rises through the years of our IVA to be swallowed in expenditure.
Its still not perfect & a bit of a struggle - but we are hopeful of completing our IVA now.
Final IVA payment made in April 2013, never ever thought we could do it or get through it but we did! X
An IVA.co.uk Mentor is someone sharing from their experiences of dealing with debt
I have not been accepted yet but our food bill was questioned, there are only 2 of us, however we're veggie and we don't eat 'crap' partly cos we don't want to but partly as my OH has a low immunity due to a health condition he needs to eat a healthy diet. Once I explained this to the IVA company they said that if those figures are questioned they will explain our situation.
When I say we don't eat 'crap' I don't mean we buy expensive products I mean we make most things from scratch, you would think this is cheap but veg seems to be on the up and up price wise like everything else!
"It is never too late to be what you might have been"
Fiona
beatmydebt.com,living expenses guide states that for housekeeping and clothing maximum allowances may be claimed if monthly income allows-we have 406 a month for food(2 adults and 1 child) - and 60 for clothes( our original 40 quid allowed didnt cover my lads clothes a month never mind me and hubby)-our iva manager allowed us the upper limit on housekeeping when hubby had a pay-rise.
Last edited by andrea1968 on Fri May 13, 2011 5:21 pm, edited 1 time in total.
full and final accepted January 2015
iva agreed; August 2010
iva would have completed; August 2017
extra year thank's to NRAM
We claim £360 for food and we are three adults. Clothing is £50 but then hubby doesn't work and I wear a uniform so we don't need a lot.
Don't forget to claim for things like meals at work, opticians, dentist, haircuts. It's amazing what you forget to put down.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I might be wrong here but it has been suggested that the CCCS works VERY VERY closely with all the banks and credit card companys, and may even be funded a little bit by them so it would be in their intrest to get as much money as they can for their creditors.
I cannot see how any IVA can run the whole course without a budget you stand a chance of living off.
Yeah we ran up all the debts BUT i still stand by the fact that these credit card companys and banks have had their fingers burnt by their own greed.
"Good news we have raised your credit limit to £****** !!!!
baldy - I feel like writing to the creditors saying thanks for all the good news letters putting my limits up over the years, here's the bad news - I can't pay you back!! lol.
kazza-that is so cheeky!!!! (funny though-and quite true in our case aswell)
Hopefully all hubbys pay rises will be absorbed into expenses as we do have a minimum dividend stated for the first 6 years.
The 7th year(equity release clause)will be a extra for the creditors (and they knew that when they decided to give us an extra year for good luck !!!)
If you need something - claim for it.
If the creditors disagree - show them receipts.
No-one should be struggling in an iva-if all our basic requirements for daily living are not catered for in our budget then the iva is doomed to fail from day one.
The creditors need to understand this and if they squeeze every penny out of us and have no true understanding of the cost of living then they only have themselves to blame if those struggling in an iva throw the towel in and go bankrupt.
Last edited by andrea1968 on Fri May 13, 2011 5:54 pm, edited 1 time in total.
full and final accepted January 2015
iva agreed; August 2010
iva would have completed; August 2017
extra year thank's to NRAM
As regards IVA's then CCCS are just the same as any other IVA company - we are the ones who pay the fees.
If it's debt management then it is free for the debtor and the creditors fund it.
Baldy - I know it's easy for me to say but you didn't have to accept the higher rating.
I did all the time, especially when I was getting close to the other one and I blame myself entirely for that.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
andrea1968 - I know - only joking. I do feel very guilty for using all the credit over the years, but our circs have now changed and to be honest they have slammed the door in our faces when we have asked for any sort of help in being able to repay them so the guilt is fading quite quickly! If I win the Euro millions tonight I shall pay them every penny, in pennies so they have to count it all out!!!
