People who earn a reasonable salary often don't expect to be considering an IVA. But a mortgage, two cars, childcare and a few years of relying on credit cards can add up. This page looks at the situations we see most often from commuter households.
Commuting to Newcastle or Durham: what goes in your budget?
Travel is often one of the biggest costs for households in Chester-le-Street, and it needs to be recorded accurately in your IVA budget. Creditors accept reasonable commuting costs, because keeping your job is what makes the IVA work.
Train and bus fares
Chester-le-Street station is on the East Coast Main Line, with local trains towards Newcastle and Durham, and there are regular bus routes along the A167. Use the price of the season ticket or travel pass you actually buy rather than an estimate.
Running two cars
Two-car households are common where partners work in different directions. A second car can be accepted if both are needed for work, childcare or caring responsibilities, but creditors may ask questions if one could reasonably be dropped. Be ready to explain how each car is used.
Parking and workplace charges
If you drive to Newcastle or Durham, city centre parking or a workplace parking permit can add a significant monthly cost. Include it, along with any park-and-ride fares, so your budget shows the true cost of getting to work from Chester-le-Street.
When a consolidation loan hasn't worked
A lot of people we hear from in Chester-le-Street have already tried to fix their debts with a consolidation loan. It cleared the cards for a while, but the balances crept back and now there's the loan as well. If that sounds familiar, you're far from alone.
An IVA can usually include the consolidation loan alongside the credit cards, as long as the loan isn't secured on your home. If the loan was secured, it's treated like a mortgage and stays outside the IVA, and the monthly payment goes into your budget.
Balance transfers and 0% cards
Moving balances between 0% cards can buy time, but it gets harder once your credit rating starts to slip and the promotional rates end. If you're juggling transfers just to keep up with minimum payments, it's a sign the debt has outgrown the income. Every credit card balance can be included in an IVA, and once it's approved, interest and charges stop.
Mortgages on family homes in Chester-le-Street
Many homes in the town are family houses bought with a mortgage. Your mortgage isn't included in an IVA, so you keep paying it as normal, and it's treated as an essential cost in your budget.
Homeowners are usually asked to try to release equity around six months before the IVA ends. If there's enough equity, you'd be asked to remortgage and pay a sum into the IVA. If you can't remortgage, the IVA is normally extended by up to twelve months instead of your home being sold. See IVAs and your home for the full picture.
Is it really a debt problem, or an income problem?
Sometimes household costs have outgrown income, and no debt solution will fix that on its own. Before committing to five years, go through your outgoings line by line. Subscriptions, phone contracts, insurance renewals and energy tariffs can often be reduced. An IVA budget allows reasonable amounts for things like broadband, a mobile phone and some leisure, but it won't stretch to several streaming services and a gym you rarely use. If trimming costs closes most of the gap, a Debt Management Plan may be all you need.
Childcare and school costs
Nursery fees, wraparound care and school costs are all essential spending in an IVA budget. If you receive help through Tax-Free Childcare or the government's funded childcare hours, include it, and record what you actually pay after that help. Costs often fall as children start school, and the annual review is where your payment can be updated.
Council tax in the town
Chester-le-Street is part of County Durham, so your council tax is collected by Durham County Council. Arrears can usually be included in an IVA, but your current bill must be paid as it falls due. If one adult lives in the property, check that you're getting the single person discount.
Which solution suits a household like yours?
| If this sounds like you | Consider |
|---|---|
| Good income, debts you could clear in four or five years at a reduced rate | Debt Management Plan |
| Good income, but debts too large to repay in full in a reasonable time | An IVA |
| Substantial equity in your home | Independent mortgage advice first, then an IVA if needed |
| Job requires you to avoid formal insolvency | A DMP, after checking your contract |
You can try your own figures in the IVA calculator.
Getting in touch
We're based a short drive up the A167 in Newcastle, but everything is done by phone and email, so you won't need to fit an appointment around your commute from Chester-le-Street. Many people find a short call after work or on a lunch break is the easiest way to start. Send the form at the top of this page and choose a time to be contacted, including early evening. There's no charge and no obligation.
Free advice is also available from Citizens Advice County Durham and MoneyHelper.
Common questions from commuter households
Will an IVA affect my season ticket loan from work?
A season ticket loan from your employer is a debt and can be included, although many people choose to keep repaying it through payroll. Tell your adviser it exists.
Is Chester-le-Street covered if I work in Newcastle?
Yes. An IVA depends on where you live, not where you work, so living in County Durham and working on Tyneside makes no difference.
Can my partner keep their own credit cards?
Yes. Debts in your partner's sole name aren't affected by your IVA, although their income counts towards your household budget.