www.iva.co.uk

I don't understand - I have just spent an hr reading the latest posts on the forum and I am shocked at the number of people already signed up to an IVA considering taking credit or looking at ways of improving their credit rating - surely we have all learnt our lessons and the last thing we want is more credit !!!

If people are struggling to pay their IVA payments, then my adivse would be seek your IP's help as they are human and will offer you the support and advice you need. Please don't undo the good work you have done so far and gain further credit !

13 down 47 to go and still smiling!

The only reason I want to eventually repair my credit rating is so I can get favourable mortgage deals way in the future and also for if I needed car finance.

Plus things like moving to a new mobile phone supplier needs credit checks too.

I never want credit cards or loans again though.

A lot of people want to take out mortgages in the future, and will need credit checks. People also want cars and possibly need credit for that.

As long as you don't go stupid, and just do enough to repair your credit rating, you should be ok.

Just don't go mad and take out lots of cards and loans again.

I know when my IVA is finished the only credit I will look to take will be a mortgage hopefully ! I am going to buy myself a shiny new car - but only when i can walk through the doors to the garage and hand over the money for it !

I know and appreciate we all have differences in life - but am just amazed at so many looking to so early on in their journey to debt freedom for ways to gain credit !

I have learnt so much in 12 months and feel a completely different person - I went shopping at the weekend to a massive mall - first time in 6 months - I must have picked up and put down five or six things - didn't need them so didn't buy them - before IVA time it would have been in a bag quicker than anything !

We all learn by our mistakes !

I wish we were in a position to save first for a shiny new car, but unfortunately, we need a car to enable hubby to work. Our only option is for me to lease/buy a car, if that means short term credit then so be it!

We have been in an IVA for 18 months and we've certainly learned lessons.

That's the problem with shiny new cars, they are so expensive. With the best will in the world, it would take me a fair while to save for a decent one by saving my iva payments once I'm finished.

I would not take credit just because I could once I'm finished. It will be a necessity and the barest amount I have to.

I've spent most of my adult life in debt, when this is over I have no intention of ever having credit again. I don't care what my credit report looks like and if it stops me even being tempted then all the better.
Saying that I do understand that for certain things like mortgages it's neccessary to have a clean report.
We're all adults and it's up to us what we learn from this experience and how we choose to live our lives afterwards. I suppose part of the rehab is learning to handle credit again without excess.

Heh I have to agree with lulu I am quite scared with the thought aboutcoming out of my iva. I dont feel ready but only have about a year to do...I wont be looking for credit but will enjoy my new found thrifty spirit. Its a little worrying to think about credit whilst in IVA as Ifeel its awhole life style change and I feel we are so ahead of the game many people will be coming this way in the coming months.
Just my thoughts no wish to offend x[:I]

I am glad I am 12 months down the IVA route - you are right I am sure many more will be joining our journey very soon.....and we are all here to share our experiences and thoughts with them !

I will only be able to have a shiny new car because our IVA payment is over £1200 a month - therefore within a few months of my IVA finishing I will have the money ! I appreciate not all of us will be able to and maybe when the time comes I will think differently - but hey a girl can dream can't they !

May be part of the rehabilitation is to have a clean record there. It doesnt mean wanting a clean record is going to lead to another nightmare, spiral of debt. You could have £250 on a credit card and never use it.

I cant say I am anywhere near that way of thinking myself yet but I know I couldnt live without a car so may be I will want credit again one day. I just dont want bad debt, I think there is a difference.

Whilst I agree it would be foolish for anyone to want to run up debt especially after being in an IVA. I can see situations where sensible borrowing maybe necessary. Again, in our situation we need a car now, we're 18 months into the IVA and cannot manage until the end of an IVA. I know when the IVA is over, it wouldn't take us long to save for a car as our monthly payments are in the £1k region, but unfortunatley we cannot wait.

I also know to build up credit rating to get a better mortgage deal, some posters will have to take out credit cards. Like Pixie says

"We're all adults and it's up to us what we learn from this experience and how we choose to live our lives afterwards. I suppose part of the rehab is learning to handle credit again without excess."

I wish to be able to buy a house in the future so in order to get a good mortgage deal I will need good credit rating.

Hi,

No harm in trying to improve your credit rating. However without the express permission of your Supervisor most persons in a IVA are not able to obtain credit even if the lender is willing.

Paying your IVA on time will help in the future.

In any event why look for credit - there are many pre-paid debit cards


Regards

David

http://www.cleardebt.co.uk

My personal view is that all thoughts of repairing credit ratings ought to wait until the first lot of credit has been repaid. But as Julie saysm there are valid reasons for seeking credit whilst in an IVA, perhaps for a mortgage or a replacement car - which could actually improve the outcome for creditors - so never say never!

I think there's a big difference between problem debt and access to credit.

Very few people can afford to buy big-ticket items like houses or cars without credit. Provided that the arrangement is affordable credit can be a good (or the only) way to meet a need.

Many people also need credit to meet work expense commitments that are only met upon receipt of a prepaid invoice. Try renting a car without a credit card and you'll find some big rental companies simply aren't interested.

Equally the use of a credit card confers some fraud and purchase protection when purchasing online that some debit cards will not match.

The problem point often seems to be when credit is used to meet daily/weekly needs. However the messages on this forum seem to relate to the big-ticket items, online security, and being able to carry on professionally.

I completely agree with Melanie that resolving problem debt levels should always be a priority. This is reinforced at the moment by the focus on "affordability" within financial services led by the FSA.

Lenders for big-ticket items will check your ability to repay a new loan by factoring in existing repayment commitments against your income. For this reason a high level or unaffordable level of debt will likely restrict access to credit irrespective of payment record.

Dealing with high or unmanageable levels of debt (in whatever way is appropriate for an individual) will become increasingly a prerequiste to access to credit in the current dire finance environment and should be treated as a priority. Doing so lays the groundwork for access to credit where necessary (as it will always be for certain things for most of us) in the future.