Credit Cards and Your IVA, Question by Question
What happens to the balances, the interest, the cards themselves, and joint accounts.
Can credit card debts be included in an IVA?
Yes, and they are the most common debt of all in IVAs. Credit cards are unsecured, so they go straight into the arrangement alongside any loans, overdrafts and other borrowing. Once your IVA is approved, the balances are frozen, the card providers are bound by it, and any qualifying balance left at the end is written off. For many people, credit card debt is the main reason they look at an IVA in the first place.
Do I have to include all my credit cards?
Yes. You cannot pick and choose, every credit and store card you owe on must be included. That means you cannot keep one card outside the IVA to carry on using it. Including them all is part of what makes the arrangement fair to your creditors, who are all treated together, and it is why full, honest disclosure of your cards at the start is so important.
What happens to the interest and charges?
They are frozen. Credit card interest can be a big part of why balances feel impossible to clear, but once your IVA is approved, all interest and charges on the included cards stop. From that point the balance no longer grows, and your single monthly payment goes towards clearing what you owe across all your debts. For many people, freezing the interest is the turning point.
Can I keep using my credit cards?
No. When your IVA is approved, your credit card accounts will be closed, and you will not be able to keep using them. This is a normal part of the process, an IVA is about clearing existing debt, not adding to it. You should also avoid taking on any new credit while the arrangement runs, as that can put it at risk.
How much of my credit card debt is written off?
The same way as your other unsecured debts. A credit card is not treated differently, it sits alongside your other creditors. You pay what you can afford over the term, and whatever qualifying balance remains at the end is written off. How much that comes to depends on your overall affordability across all your debts, not on any one card.
What about store cards and catalogues?
They work in exactly the same way. Store cards, catalogue accounts, buy-now-pay-later balances and similar are all unsecured debts, so they can be included alongside your credit cards and treated identically, frozen on approval and partly written off at the end. If you owe on several of these, an IVA can pull them all into one affordable monthly payment.
What about a joint credit card?
This needs care. A genuinely joint account means both of you are liable for the whole balance, so putting your share into an IVA does not clear the other person's responsibility, and the lender can still pursue them. An additional cardholder on your account is different, as the main account holder you remain liable for the debt. It is worth checking how any shared cards are set up before you proceed.
Can I get a new credit card during the IVA?
No, not without permission. Taking on new credit, including a new card, is restricted during an IVA, and a new debt would not be part of the arrangement anyway. Applying for credit can also breach your terms. If you are reaching for credit because money is too tight, that is a sign to speak to your supervisor about reviewing your budget, rather than borrowing more.
Should I get advice?
Yes. Credit card debt is common and very treatable, but an IVA is only one of several ways to deal with it. A free, impartial adviser can look at your full situation and tell you honestly whether an IVA, a Debt Management Plan, a Debt Relief Order or another route would serve you best. It costs nothing, there is no obligation, and it is the surest way to make the right choice.
