www.iva.co.uk

the terms in my iva to quote
"i will not obtain any credit greater than £500 without prior written approval of my supervisor"
so does this mean i can apply for credit up to £500 and the iva would not be a breach? ie a payday loan couple days before payday? which it would prob be refused anyway so just curious

Hi,

You really shouldn't need to want to take out any further credit, especially a payday loan. Is there any reason why you would want to?

If you are having problems then please speak to your IP for either a review of your IVA or a payment break.

This clause is usually to cover credit such as car insurance, where you pay monthly, utilities where you are on a credit meter, that sort of thing. If you need to resort to payday loans there is something amiss with your I&E or with your budgeting and spending.

I think this is more to cover you for utilities and the like rather than entering into more monetary debt. If you are struggling to stay within your I&E then you really need a conversation with your IP, or as hard as it may seem, spend less on 'stuff'.

If used correctly this just needs common sense. A small payday loan to stop you incurring charges would not breach your IVA but if you need to borrow regularly there is something wrong. Having an overdraft buffer is again fine as long as you are not relying on it to get by.

I doubt you will be able to get a loan anyway as your credit rating will be trashed.

The real question here is why do you need a payday loan - you need to address the propblem.