agree to pay off a proportion of their debt over a period of
time, usually five years upwards, in exchange for the larger
part of the debt being written off. Others entered into private
debt management agreements with their creditors which enabled
them to pay only what they could afford but which retain the
creditor’s effective hold over them until such a time
as repayment is made in full.
In all of
these three models the person whose debt it is will invariably
have earned a bad credit rating which will effectively debar
him or her from obtaining credit for many years to come, even
after the bankruptcy is discharged or the IVA is settled.
to help repair bad credit history is through the acquisition
and use of “bad credit credit cards”. The idea behind
bad credit credit cards is to give the holder a second chance
to demonstrate an ability to manage finances properly. There
is often no actual ongoing credit involved, the cards simply
ape the whole ethos of credit card use and purchases are settled
in full in each time. It effectively puts the one time bad debtor
back on the radar as somebody who may at some unspecified time
in the future be trusted with a “real” credit card
credit credit cards do actually make a small amount of credit
available, although the limits tend to be low and the APR (Annual
Percentage Rate) high. Once again they are worth having, especially
if one is able to pay them off in full at the end of each month
and thereby avoid having to make interest payments.
speaking they are a useful tool; even if one has no intention
of ever seeking credit again it is nice to have the option available
in case of emergency.