A prepaid card is a great way to manage your budget if you are in an IVA (Individual Voluntary Arrangement). Because your expenditure is tight, it is vital that you do not overspend. But how does a prepaid card help?
Why Get a Prepaid Card with Suits Me When You Have an IVA?
There are many reasons why a prepaid debit card is a great option if you have an IVA:
- You can only spend preloaded money (i.e. from wages),
- Get awesome discounts and cashback deals,
- There is no credit check,
- Suits Me do not discriminate
Did you know that banks sometimes close bank accounts if you get an IVA? If it happens to you, it can be a very daunting situation. Many high street banks will reject applicants with IVAs, but don’t fret. There is another option! Suits Me do not discriminate against people with IVAs and we don’t perform credit checks. Plus, our prepaid debit card is great for budgeting!
If your bank has frozen or closed your account, or you are looking for a better way to budget, you can open a Suits Me account in minutes!
Why Budgeting in an IVA is Important
If you have had to take out an IVA, it is likely because your debt has grown too large for you to handle and you need help making repayments. The agreement you reach is unique to each case, but generally, you are left with very little funds after your monthly repayment has gone out.
Whilst IVAs can help you pay off your debts, you can risk it all falling through if you miss a payment and breach your agreement. If this happens, you will be back to square one. Therefore, it is vital that you make your payments on time. The best way to make sure this happens is through budgeting.
How to Budget with a Prepaid Card
Budgeting is a great way to organise your finances and stop you from overspending. Put simply, budgeting is calculating how much money you receive into your account (from your wages, grants, welfare etc.) and how much money you spend (on groceries, utilities, rent, car insurance etc.) then allocating amounts of money to each expenditure. The best part of budgeting is knowing exactly how much you will have left to spend on yourself, stopping you from accidentally spending too much.
💡 Top Tip: When it comes to budgeting, it is better to overbudget than underbudget. For example, if you spend £30-£40 a month on fuel, budget for £40+ rather than £30. This way, you are less likely to overspend. Plus, it gives you a little extra for non-essentials if you underspend!
👉 If you’d like to learn more about budgeting your money, check out our quick and easy guide on how to Budget Effectively Using a Prepaid Debit Card.
Example of a Budget Sheet
Below is an example of a budget sheet, which you can tailor to your personal needs. The costs used are for example only and do not reflect actual fees.
💡 Top Tip: If you overspend, take this into consideration for the next month and either increase the budget for that expenditure or be extra careful not to overspend next time!
Sticking to Your Budget
So, you have worked out how much to budget for each expense, but how do you stop yourself from accidentally spending that money? With a Suits Me account, you can set up ‘envelopes’. This handy tool means you can separate your account balance and set aside money for upcoming bills. Pretty handy, right?
How to Set up Envelopes
Setting up your envelopes is quick and easy. For each envelope, you can select the date and the amount of money that you would like to be moved from your account to the chosen envelope each month.
Once you have set up your envelopes, money from your Suits Me account will automatically be moved to your dedicated envelopes each month. Money can be taken out of your envelopes and added back into your main account section if required.
Open an Account with Suits Me Today
Budgeting can be hard, especially if your expenses are high or you have an IVA, but you can do it! Using Suits Me’s useful envelope tool and creating a budget sheet can help you efficiently manage your finances, so join us today and take the first step towards efficient budgeting!
With a Suits Me account you can also:
- Set up standing orders
- Manage direct debits
- Send money home and abroad via bank transfers
- Use Google Pay and Samsung Pay
- Gain access to our exclusive cashback reward programme
- Utilise our ‘envelopes' system to save and budget
You can open a Suits Me account within minutes with no credit checks. We accept 99.8% of all applicants and once your account has been opened, you can start managing your finances immediately.