If you are on an IVA plan, you know that you will need to spend carefully. An IVA is not a short term solution to getting out of debt and can last up to five years. The first step that you need to take is to ensure that you do not default on paying your monthly installment towards your IVA. Defaulting on this can cause you to lose your IVA, and you can get sued by your creditors. So, that is the first monthly payment that has to be paid judiciously. If you are living on rent then your next priority should be to pay your monthly rent. If on mortgage then it is the mortgage payment that should be made.
Next on your list of necessary expenses that you cannot avoid paying will be children education and insurances. If you have bought anything on hire purchase you will need to pay its installments.
There are certain fixed monthly expenses that you have to pay, like utility bills. You can review your utility bills and cut down on them. Simple steps like turning off extra lights, appliances when not in use, will help reduce your utility bills. Appliances on standby mode also consume energy, so switch them off from the mains. Cutting down on telephone calls or switching to a cheaper service provider can also help you save some money.
If you have your own car, check how much you spend on transport. You can easily cut down on transportation costs by planning your trips and trying to get the maximum work done per trip. You can switch to public transport and walk to and from work or car pool.
Families spend a lot on groceries and seldom know exactly what their groceries expenses are. Therefore, it would be a good idea to shop with a shopping list and keep a tab on what your grocery expenses are. After a month, you will know where you can cut costs on your groceries. Buying in bulk and looking for bargains can help you cut costs.
Only buy things when it is absolutely necessary and pay cash. You can ask your family to chip in with ideas on how to cut costs. Living within a monthly budget can just be the driving factor to clear you of your debts. You can cut down on entertainment expenses and stay far away from impulsive shopping. Sales and bargains at super stores may sound exciting and cost saving but go armed with a list of what do you really need to buy. Do not get caught up in the mad rush of bargain shopping. You can end up spending on things that may turn out to be quite useless and a waste of money.
By following these few simple tips, you can live within a budget and work through your IVA plan. The good thing about it is that once your IVA is over, you will have developed a habit of spending carefully.
Next on your list of necessary expenses that you cannot avoid paying will be children education and insurances. If you have bought anything on hire purchase you will need to pay its installments.
There are certain fixed monthly expenses that you have to pay, like utility bills. You can review your utility bills and cut down on them. Simple steps like turning off extra lights, appliances when not in use, will help reduce your utility bills. Appliances on standby mode also consume energy, so switch them off from the mains. Cutting down on telephone calls or switching to a cheaper service provider can also help you save some money.
If you have your own car, check how much you spend on transport. You can easily cut down on transportation costs by planning your trips and trying to get the maximum work done per trip. You can switch to public transport and walk to and from work or car pool.
Families spend a lot on groceries and seldom know exactly what their groceries expenses are. Therefore, it would be a good idea to shop with a shopping list and keep a tab on what your grocery expenses are. After a month, you will know where you can cut costs on your groceries. Buying in bulk and looking for bargains can help you cut costs.
Only buy things when it is absolutely necessary and pay cash. You can ask your family to chip in with ideas on how to cut costs. Living within a monthly budget can just be the driving factor to clear you of your debts. You can cut down on entertainment expenses and stay far away from impulsive shopping. Sales and bargains at super stores may sound exciting and cost saving but go armed with a list of what do you really need to buy. Do not get caught up in the mad rush of bargain shopping. You can end up spending on things that may turn out to be quite useless and a waste of money.
By following these few simple tips, you can live within a budget and work through your IVA plan. The good thing about it is that once your IVA is over, you will have developed a habit of spending carefully.
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