Credit Card Individual Voluntary Agreement

Credit Card Individual Voluntary Agreement

It pays to be aware about what exactly a credit card individual voluntary agreement is. This is because many individual voluntary agreements actually do not allow a debtor to obtain and even use a credit card. However, under certain circumstances and after getting special permission it is still possible to enjoy credit card individual voluntary agreement facilities. This is mostly possible for those who are self employed.

Individual voluntary agreement - terms of the agreement

The first thing that you should do in regard to understanding credit card individual voluntary agreement terms and conditions is to go over the terms of your agreement with a fine comb. Your agreement will spell out the terms regarding credit card individual voluntary agreement. In most cases, it would mean that your credit card individual voluntary agreement will prevent you from making use of your credit card and it can also stop you from obtaining a fresh credit card.

All is not lost

However, all is not lost because if you discuss your financial position with a good individual voluntary agreement advisor, chances are that you can get a positive response regarding your credit card individual voluntary agreement. A person that is self employed and also those that run a small business are normally in a better position in so far as their credit card individual voluntary agreement terms and conditions go.

Insolvency Practitioner

However, an insolvency practitioner needs to give you their permission to either apply for or even use your credit card individual voluntary agreement. Even so, you may not be able to use your credit card for more than five hundred pounds.

It is also important that you track all the expenses that are being incurred on your credit card usage. At the very least, you have to make it a point to pay all these expenses on time and in full so that you do not allow your debts to rise.

You should however understand that one of the terms of an individual voluntary agreement is that it will have a clause that will prevent you from using your credit card. The only way that your credit card individual voluntary agreement will not prevent you from using the credit card is when you can show special set of circumstances which force you into using a credit card.

An alternative solution is to make use of the pre-paid credit card that is becoming very popular these days. Such cards actually do not provide you with credit and instead work like a debit card. The latter allows the user to get access to cleared funs on your account. This obviates the need to make use of credit card checks. However, such credit cards offer all the features that are normally associated with a typical credit card and so you can use it to make purchases.

Therefore, if your credit card individual voluntary agreement does not allow you to use your credit card and you cannot get permission from the Insolvency Practitioner to use your credit card, you can always turn to using a pre-paid credit card.

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