The top IVA tip to keep you happy
People who are in an IVA need a lot of advice, as do people who are considering getting an IVA. The type of tips they get will determine how successful their programmes are and also how quickly they can move on with their lives.
Though there are many tips to ponder, ruminate and reflect on, there is one piece of advice that should matter the most to anyone who finds themselves contemplating getting into an IVA agreement – be honest.
Be honest with everyone, but mostly with yourself. You must be realistic about how much you need to get through. If you really need that fancy cup of coffee once or twice a month, then budget for it. If you just can’t miss out on a trip to the movies once a month, then include it in your calculations.
We are all human and we all need a little luxury every once in a while. Not a lot, just a little. A gym membership might sound frivolous to someone who lives in a safe neighbourhood but to someone who doesn’t it might feel like a necessity.
There is no point in cutting your budget to the tiniest size ever just to impress the people who need to approve your IVA application. Be honest about your living costs but still try to prune wherever you can. Cut things out of your budget that are really not necessary but leave space for one or two treats – dinner at a medium-range restaurant once every two months or a haircut once every 6 weeks.
This might reduce the amount of money that goes towards your creditors but it will leave you with a bit more disposable income to enjoy your life, whilst still paying back the money you owe. After all, people who are content are more likely to stay the course. This also means they are unlikely to be made bankrupt by their creditors. Good news all round.