I’m new into the whole IVA thing about 6 months in. My partner has recently started working so they have asked me to do a joint income and expenditure for the household. My first six months have been hard and I’ve had to borrow money from friends and family which they are undoubtly going to see on my bank statements - I have increased my expenditure in all areas to account for money borrowed.
I have struggled to keep track of spending as I have paid by card for everything - is there anything stopping me from withdrawing my money after all rent, council tax etc (set bills) and paying for everything in cash? I just feel it would be easier for me to keep track that way, maybe have some money wallets with my budget in for each thing. I don’t want to do this though if it will reflect badly on me and they fail my IVA - any help on this would hugely appreciated.
Hi I use cash for everything. On my payday I only keep direct debits in the account and withdraw all the rest in cash. I have envelopes I use for gas/electric etc.. and I’m year 2 into my Iva and they have never questioned this. I find using cash I have more control over it and budget a lot better. I find if you use your card you just keep spending without realising.
So using the cash route is definitely a good idea to help with budgeting.
There is nothing to stop you paying in cash - a lot of people will withdraw what they need for the month and put it in separate envelopes. When you go out shopping make sure you make a list and stick to it. If you don't have a card with you, you won't be tempted to overspend. Use your bank account for your normal direct debits. As to the borrowing, explain this to your IP and make sure they know that you won't be paying them back straight away.
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
All of the above! Cash is a great way to keep track, as well as 'reconnect' with 'real money'. When you go shopping take only your allowance in cash -- that way, if you haven't got it, you can't spend it ! You do have to keep an eye on your spend though as you trundle around the supermarket. Also, if you are going out for a walk or appointment, don't take cash with you so that you are not tempted to buy that magazine or a coffee --- it is frightening how these little treats mount up !
It took me a year before I was comfortable with the debit card again, by which time I was into the budgeting lark !
I am not qualified to give advice and can only state my opinions, based on my IVA experiences.
Not for normal everyday spending on necessities. If you needed a big spend (with IP's permission for an emergency) then you would need proof but otherwise don't worry.
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 don’t keep any receipts as I usually don’t take them when asked at the till I want one or if it’s self service usually goes straight in the bin. I’ve never been asked to show any proof. I guess depends on different companies I’m with Creditfix as much as there bad reputation at times they haven’t minded me doing things this way.
I have only heard of receipts being asked for for unusual expenses, outside of agreed allowances. If you have £400 for housekeeping, you spend it as you wish - £400 worth of beans, or £400 worth of steak, or even divert a few quid, saved by living on those beans to cover a night at the local Odeon. I doubt IVA providers have the time or resources to itemise every spend.
I am not qualified to give advice and can only state my opinions, based on my IVA experiences.
