Can you still use a credit card on an IVA?
If you are on an IVA (Individual Voluntary Arrangement), and are finding it difficult to pay for your expenses using cash/debit cards, the question may spring to mind – ‘can you still use a credit card on an IVA?’
Well, the answer to this isn’t really as clear as you may think.
Different IVAs can come with different conditions, but you’re unlikely to be able to access more than a certain amount of credit without getting the approval of your IP (Insolvency Practitioner). After all, if your ‘old’ lenders are agreeing to write off a portion of your debt, they don’t expect you to take on more debt while your IVA is in progress.
Plus, the whole idea of entering an IVA in the first place was to clear your debts – so taking on more debt won’t help your situation.
If you are struggling to afford your monthly expenses, you should speak with your Insolvency Practitioner and explain your situation. They may be able to help you budget more effectively, taking some of the pressure off your finances.
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