One of the main reasons people get into debt in the first place is that we have no emergency fund. When something essential goes wrong (boiler, car necessary for work etc.) it simply has to be repaired/replaced. And the reality is that most of us simply don’t have the funds available to manage the unexpected expense. We may live according to our means, but the majority live up to their means with no wiggle room. And if we were to lose our job – could we survive in the short term – until hopefully we secured another job, or at least until any benefits entitlement were sorted?

Once our IVA has finished, by definition we must be better off as we have the IVA payment level to play with. And the joy or relief at such an event is well deserving of some celebration. The holiday we have missed out on, the bottle we haven’t cracked open for a while, the trip to the shops that we have been resisting for so long – well, it’s only right for a spot of indulgence! But -you know what’s coming!

We really do need to start thinking about saving. One person post-IVA explained that they had decided that half the payment they had been making into the IVA was now going into a savings account. It meant they has extra for day to day needs and the occasional luxury, but savings were in place for the rainy day that was bound to come sometime. They described it as a double win – more in their pocket now and for the first time ever, a growing savings pot.

However we decide to go about it – we need something tucked aside for the unexpected. Some of the money saving lessons we learned during the IVA can of course continue – shopping around, using coupons or loyalty rewards, selling rather than collecting. It may be possible to join savings scheme at work or a Christmas club in order to spread the cost of what can be an expensive time.

With our growing credit score – we may be able to take advantage of perks or higher interest by switching bank accounts.