Iva help and advice

[blacksocks33]

Hi all,
Before anyone mentions it, I have been in the MSM foroum and the Iva page is dead so I'm looking here for some advice!

I'm in an Iva. I'm Single mum to two children, I work part time and claim UC top up.

I have a car. She's an older car but I've had her a long time so I know where I stand with her. A few weeks ago it broke down and is going to cost me ALOT to get fixed. I can do soemthing temporary but the top and bottom line is... I need a new car is the not so distant future.

I don't live in a main bus route, I love a drive away from school and work. I don't have family to help me.

I feel like I'm just stuck in between a rock and a hard place. There doesn't seem to be any opportunity for me to earn any money to save for my car. If I hammered some overtime (between the sparse childcare I have!!) at work my UC would drop and any left overs I get would have to be put in my IVA. My Iva only allows me to budget £20 a month to "save".
I just am filled with so much anxiety and sadness. I am trapped. I am watching everyone live their lives and doing wonderful things and I'm counting the pennies to buy ice creams on trips to the park.

How can anyone actually save up for anything in Iva's?! I'm a year into it.....

Also guys I've been through my budget with a fine tooth comb and I don't wanr to post things like my income on here. I just want advice as to how I can save for a car /get a new car when on an Iva.

I feel like the answer is.... you can't!

Maybe talk to your Iva. I thought a set amount was agreed and you pay that

So any extra money can be saved towards a car

How long do you have left on it

It does help to post income and expenses as many do help and save the op money

Anecdotally, lot of people have used IVAs where they were not actually the best solution. Not sure there's a way out once you're in but you could do a bit of research.

Speak to a debt charity like National Debtline or Step Change.

Be careful googling for advice as lots of links are ads.

Thanks both!
I did a lot of research at the time and I was advised by step change and pay plan this was the best option.
I'm happy to proceed with it but I'm feeling worried about my car. There's literally no way of me saving for one and I don't know where that leaves me. We'll have no quality of life. Its so hard when you just have nobody to turn to :(

Was your car owned outright?? When I was in my IVA, my existing car finance ended and I was allowed to get another car on finance as long as it didn't impact my ability to pay the agreed monthly IVA payment. The new payment was higher, but I was able to juggle my budget to allow for it and they agreed with no problems.

@Justmeonlyme I own my car outright :( it's not worth a right lot so it was ok with the Iva! The problem with used cars is that to get a car for a couple grand now probably wouldn't even put me in that much of a better situation because it's probably have loads wrong with it!

I'm not sure if I would even get approved for a car finance because obviously my credit rating has taken a hit....

@blacksocks33 The finance company we used that accepted us while in the active IVA was First response, just in case you want to give it a try, obviously a subprime lender so higher interest rates, but we had no choice, we needed a car for work and had no savings to purchase one outright

While this might sound silly an older Nissan leaf will have not much battery charge left 80 miles but the flip side there's not much that needs replaced in them as there's no mechanical bits

IVA board still looks reasonably active. It doesn't get as many posts as MN but people were posting in the last few days. If you post your question there, you've probably a better chance of a knowledgeable answer within a few days.

https://forums.moneysavingexpert.com/categories/iva-dro?utm_source=community-search&utm_medium=organic-search&utm_term=iva

The Debt Free Wannabe board is more active, and you could get advice on income and expenses there if you don't want to post here. But MSE is probably considered brutal compared to MN on that front, because people are far less affluent so used to living on a low budget and have little time for MN indulgences dressed up as basic essentials.

https://forums.moneysavingexpert.com/categories/debt-free-wannabe

Have you regularly reviewed your budget with your IVA to account for CoL increases? Have you had advice on the amounts allowed in various categories? It should include an amount for car servicing/maintenance like tyres and repairs and tbh I'd probably include the cost of a service but not actually have it done and use the money to pay for repairs.

When I had an IVA 20 years ago, the amount allowed for groceries was incredibly generous - about £400 pm for a couple 20 years ago, so you'd be allowed quite a bit more than that now, such that you can easily spend less and free up money to save for a car or other costs. It's an unwritten rule with IVAs etc that you run two budgets. The 'official' one that's shared with your IVA supervisor and hence your creditors and the real one where you spend less on groceries, also tweak your car running costs like I've said above, which allows you money to save and also spend on more leisure activities.

On the matter of ice creams, tbh when money is tight I'd buy them from the supermarket to have at home after the park - you can get a whole box for the cost of one at the park so it's a no brainer and saving a few quid is more important than 'the experience of having the ice cream in the park'.

How long does your IVA have to run and are you a home owner? If so, do you have a mortgage? Has that increased during your IVA and have you accounted for this? But if you're renting, you probably shouldn't be in an IVA, a debt relief order or even bankruptcy would likely have been more appropriate.

Thank you! This is helpful and it's nice to talk to someone who has been there.

I rent via the council.
I initially spoke to step change who recommended an Iva. They then felt a DRO would be more suitable so I had to speak to Payplan as sc don't arrange DRO. As my spare money outside do the budget was more then £70 I was told I don't qualify for a DRO. I can't opt for bankruptcy because it could effect my job so I ended up with an IVA.
I have accepted the IVA and grateful I have the opportunity. I am about 1.5 years in so I know in a few years my life can start again!

I get what you mean with the budget. It's hard to break your spending down with the way they budget isn't it.

I guess I need to give Payplan a call but from my research I don't think I have any way of getting a new car and I can't bare to think how not having one is going to effect our quality of lives :(

OK, fair enough. You should still regularly review your budget to make sure you're accounting for any price increases and all the running costs of a car including repairs.

In my previous post, I forgot to say that I only had to give 50% of any extra income to the IVA, but I didn't have the UC complication, so it still could be that you working more won't help.

Any chance of doing any cash in hand baby sitting type work to earn money to pay towards a car? You can legally earn £1k each tax year by self employed/trading without having to report it for benefits etc, so OK to do. Do you have anything you can sell?

Or could you eat as frugally as possible for a few weeks to save money that way? Eggs, lentils, seasonal veg etc? Use up any Nectar points etc? Possibly look for food from Olio or Too Good to Go but be careful with the latter as it's mostly a way of getting takeaway or coffee shop food for a bit less and doesn't really save any money compared with eating lower cost home made food.

Your IVA may also include provision to extend the term to allow you a payment holiday to save for a car. But are you sure that it's the end of the line for your current one? Do you have a good garage that can honestly advise you on whether it's worth repairing? If it's a good car, it could well be that it's worth paying even £1-2k for repairs if it's going to get you a couple more years out of it to save you from the unknown that is another car. If it's not worth paying for repairs, sometimes, the garages sell old second hand cars where their customers have decided not to repair them, and they've repaired them in their spare time or the work has been done by apprentices so might be a cheaper and more reliable option - if you know a garage like this, worth telling them that you need a cheap car if they have one. My friend gets her cars from her son in law mechanic this way - she can only afford cheap old cars and he's found a couple of great ones for her over the years.

Do your parents know how much you're struggling and can they help? At least they might be willing to lend you the money but not ask for repayment until after the IVA finishes?

@Bjorkdidit thanks so much for the advice, I do really appreciate it!
I'm honestly not sure how much I can cut back to be honest. I feel like I'm really scrapping the wallet as it is and I very mindfully spend money. It's just so hard as a single earner!
Yes you're right! I can keep 50% of my pay rise and OT over a certain amount. But the UC hits me. Last month I had a £50 pay rise but after my UC caught up I'm not that much better off. And I'll have to update my budget with that info.

I just can't wait to be out of this mess. I feel so out of control of my own money and my life. I just feels impossible for me to do anything!

You're also right about the car repairs. At least I know my car and what's what. To buy a new, low value car, could present me with the exact same problems!

My parents help me as much as they can. They don't know about my IVA as they would be absolutely devasted and worried and I don't want to put that on them. But they no I have next to no spare money. They can't pay for car donation though, understandably!