Individual voluntary arrangement are continuing to rise as controlling finances in the current ‘cashless’ age where everything is paid for on debit and credit cards is much more demanding.
The need to tighten one's financial belt is clear as a result of the current credit crunch. Many in 2008 will enter into an individual voluntary arrangement in order to pay back creditors and get themselves back onto a firmer financial footing. Keeping control of a budget is one of the key requirements when entering into an individual voluntary arrangement and this can be one of the toughest.
Individual Voluntary Arrangement – Budget Hints And Tips
Drawing up a feasible budget when entering into an individual voluntary arrangement is key to the successful completion of the debt repayment plan. Here are some hints and tips to keep on top of your finances whilst in an individual voluntary arrangement:
• Distinguish between want and need – When trying to stay on top of your finances during an individual voluntary arrangement, you must differentiate between things you need (food, rent) and things you want (new shoes, electronics) etc
• Track Expenses – In order to maintain a budget that is conducive to you individual voluntary arrangement, you will need to keep track on your expenses. Keep a note of them for 3 months or so to see what your average expenses are and formulate your budget accordingly.
• Keep Hold Of Bills, Receipts – It is important to know your expenses accurately in order to successfully stick to a budget during an individual voluntary arrangement. By keeping hold of your bills, cheques and receipts, you will be able to recalculate your outgoings and make sure you've not been overcharged for anything.
• Keep A Contingency Fund – When in an individual voluntary arrangement, it is generally a good idea to keep a contingency fund for unexpected necessities. A good marker would be to set aside about 5% of your income to use for emergencies. Keeping a contingency cuts down on the stress when such circumstances arise.
Speak To Varden Nuttall About Individual Voluntary Arrangements
Varden Nuttall has been established for over 15 years and is dedicated to helping people in financial difficulty find a debt management solution through an Individual Voluntary Arrangement (IVA). Employing 90 people, including trained and skilled IVA administrators, we are one of the largest IVA companies in the UK and handle over 3% of all IVA applications. To find out more about the company, or to make an appointment to talk about putting an IVA in place, call us today on 0800 031 9802 or fill in our online enquiry form.