Recently issued information assess that the cost of parenting a kid starting from birth to twenty one years of age is in many cases as much as 200,000. Lets assume that you are in an IVA and become pregnant. The issue of trying to sustain your IVA while pregnant and especially after the birth of your baby is definitely a difficult one. The undoubted enjoyment of getting a baby will have to be tempered with the reality that budgetary challenges probably will increase. Nevertheless, plenty of borrowers in IVAs have successfully taken care of the challenges presented in these particular situations.
One thing to grasp is that your IVA will not necessarily fail merely because you will be having a baby. Naturally, your budgetary position definitely will change - a few times - during your being pregnant, at the time of the birth, in the months subsequent to the arrival and when you return to the job, assuming that indeed you do intend to return to work. For a start, your income will reduce when you stop working. This of course hinges on the terms of your job. Your agreement may perhaps provide for your total wage or a substantial amount of it to be paid out while you are on maternity leave. However, for a lot of people, this will not be the situation.
Assuming you take maternity leave of nine months then your weekly maternity pay for the first six weeks of absence consists of 90% of your average gross income. Let us say that the amount you receive is X gross per week. Your average gross income is what you earned in the eight weeks immediately preceding the beginning of your maternity leave. For the other thirty three weeks of maternity leave, your weekly gross income is the lesser of X or 124.88, currently the statutory maternity allowance paid by the government. Be aware that these sums are gross and are subject to taxation and national insurance deductions. As pointed out previously, certain employers provide solid alternative schemes relating to maternity leave but the norm is as outlined above. When and if you go back to employment then your wages will generally return to what you had been making prior to your maternity leave. Your income may also improve if you become eligible to get tax credits or if you are given an increase in your current tax credits. You should apply for these without delay if there is any drop in earnings. Tax credits are likely to be paid out retrospectively to the time the claim is made so it's very important to claim right away. Child benefit is also payable as soon as your baby is born so it is vital to claim as soon as practicable.
Now let's look at expenditure. Your various expenditures may rise or reduce but in general your expenses will increase. For example, the cost of foodstuffs will grow since you have one more mouth to feed and of course home heating costs are likely to go up. On the other hand there may be a temporary lowering in the cost of transport to work. You will bear the additional expenses of clothing and diapers for your infant. When the duration of maternity leave is over, various other new costs may kick in such as the costs of a crche or other sorts of childcare, if you go back to work. If you have extended family who are agreeable to assist, some of these new expenses can be perhaps diminished to some degree.
There is no need to be anxious if you find yourself pregnant. Tell the supervisor of your IVA promptly so that your IVA can be tailored to your changing circumstances and be appropriately supervised. It may be that your supervisor will authorize a short-term payment holiday or reduction in payments or alternatively seek to change the conditions of your IVA by agreeing variation plans with your lenders. Although creditors have the final say, having a baby should not be a obstacle to a successful conclusion of your arrangement. To adapt an traditional expression - 'where there's new life, there's hope'.
One thing to grasp is that your IVA will not necessarily fail merely because you will be having a baby. Naturally, your budgetary position definitely will change - a few times - during your being pregnant, at the time of the birth, in the months subsequent to the arrival and when you return to the job, assuming that indeed you do intend to return to work. For a start, your income will reduce when you stop working. This of course hinges on the terms of your job. Your agreement may perhaps provide for your total wage or a substantial amount of it to be paid out while you are on maternity leave. However, for a lot of people, this will not be the situation.
Assuming you take maternity leave of nine months then your weekly maternity pay for the first six weeks of absence consists of 90% of your average gross income. Let us say that the amount you receive is X gross per week. Your average gross income is what you earned in the eight weeks immediately preceding the beginning of your maternity leave. For the other thirty three weeks of maternity leave, your weekly gross income is the lesser of X or 124.88, currently the statutory maternity allowance paid by the government. Be aware that these sums are gross and are subject to taxation and national insurance deductions. As pointed out previously, certain employers provide solid alternative schemes relating to maternity leave but the norm is as outlined above. When and if you go back to employment then your wages will generally return to what you had been making prior to your maternity leave. Your income may also improve if you become eligible to get tax credits or if you are given an increase in your current tax credits. You should apply for these without delay if there is any drop in earnings. Tax credits are likely to be paid out retrospectively to the time the claim is made so it's very important to claim right away. Child benefit is also payable as soon as your baby is born so it is vital to claim as soon as practicable.
Now let's look at expenditure. Your various expenditures may rise or reduce but in general your expenses will increase. For example, the cost of foodstuffs will grow since you have one more mouth to feed and of course home heating costs are likely to go up. On the other hand there may be a temporary lowering in the cost of transport to work. You will bear the additional expenses of clothing and diapers for your infant. When the duration of maternity leave is over, various other new costs may kick in such as the costs of a crche or other sorts of childcare, if you go back to work. If you have extended family who are agreeable to assist, some of these new expenses can be perhaps diminished to some degree.
There is no need to be anxious if you find yourself pregnant. Tell the supervisor of your IVA promptly so that your IVA can be tailored to your changing circumstances and be appropriately supervised. It may be that your supervisor will authorize a short-term payment holiday or reduction in payments or alternatively seek to change the conditions of your IVA by agreeing variation plans with your lenders. Although creditors have the final say, having a baby should not be a obstacle to a successful conclusion of your arrangement. To adapt an traditional expression - 'where there's new life, there's hope'.
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