If you have a significant amount of unsecured debt that you can’t afford to repay, you may have been advised to enter an IVA (Individual Voluntary Arrangement) in order to repay your debts at a realistic rate.
Like most debt solutions, though, an IVA will have an impact on your credit rating – which will be affected for six years. As a result, applying for a bank account could be difficult, as some banks may consider you to be a ‘risk’ due to your financial problems in the past.
However, if you’re currently involved in a debt solution there are some alternative banking options which may be open to you instead. Here we’ll look at opening an account if you’re struggling with debt.
“I’m on an IVA. Could I open a bank account?”
As an approach to dealing with unmanageable debts, an IVA – a form of insolvency – could offer some real advantages, but like any debt solution, it comes with some downsides too. By damaging your credit rating, entering an IVA could make it difficult to find a bank account.
However, opening a bank account whilst in debt is possible – in fact, some bank account providers offer ‘IVA bank accounts’ designed to help people in that situation. They could do this in two important ways.
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What is your concept of financial freedom? Ideally, in my opinion it means to be able to have enough money to do what I want to do, when I want to do it. I believe this is most people’s definition, too. Seems sensible, right? Think it over, if you could do something right now that would consistently generate money tomorrow with little or no continuous work, would you do it? I know my answer would be a definite, YES!
Lots of people were caught flat footed when the bottom fell out. They lost their jobs and didn’t have any sort of backup plan. Without a reserve and with a great deal of debt many people lost everything they had. Not a great deal of a reward for years of efforts, is it? But whether we want to admit it or not, we are responsible to a large degree.