1. Employed and £100,000 in debt
Mr Brown was 46 years old and single with debts totaling £100,000. The debt had built up over 10 years largely through divorce, illness and unemployment. He contacted MoneySolve after entering a debt management programme 3 years previously. During this time he had paid his creditors £450 per month but his debts continued to spiral. We were able to advise Mr Brown that in his case a debt management programme was inappropriate. We advised an Individual Voluntary Arrangement. Mr Brown is now looking forward to a future without debt after his IVA has been completed.
2. Remortgage and still £40,000 in debt
Mr and Mrs Richards had individual and joint debts totaling £40,000. Prior to their making contact with our organisation they had already remortgaged their house in an effort to reduce their level of unsecured debt. While the remortgage helped for a short time the level of unsecured debt built up through the use of credit cards and ongoing interest charges. Late payment charges were also applied to the unsecured accounts. We advised them of all their options and theyopted for an IVA and are now looking forward to being debt free.
3. Redundant and in debt
June was single, aged 35 years. After completing her university course she secured employment with a computer company. She had to relocate to a property near her new job. She incurred debts at university and in setting up her new home. After 8 months June was made redundant. It took her 6 months to secure further employment which was at a much lower rate of pay. Whilst unemployed June’s debts escalated. When she was able to find new work she hoped that she would be able to repay her creditors. Unfortunately this didn’t happen. Having contacted MoneySolve for help June is now repaying her creditors at an affordable monthly figure under an informal payment plan and is looking forward to being debt free.
4. Broken marriage and debt
John was a self employed HGV driver aged 30. He had 2 children of school age. After 10 years of marriage his marriage broke down and he later divorced. Prior to this John incurred numerous loans for home improvements and a new car. He also had various credit cards, all of which were being paid on time. Once separated from his wife John had to find alternative accommodation and to make funds available for his children. At this point he was unable to meet repayments to his creditors. He started to fall behind and his debt escalated. John had to fund the cost of setting up his new home at a time when, through the loss of his wife’s income, he was least able to afford it. We helped John by setting up an Individual Voluntary Arrangement. He now pays a fixed sum each month for 5 years. He will repay only 20% of his original debt and will be completely debt-free in 5 years time.
5. Credit card debt
Mr and Mrs Smith were aged 45 and 43 respectively. Both were in full time employment. They incurred various debts to credit card companies over a period of 5 years. The credit card debts were consolidated in a consolidation loan but their credit card balances increased again. They started falling behind with their payments. Mrs Smith subsequently became very ill and was unable to work. She received statutory sick pay during this period. Their income effectively halved and they stopped paying their creditors. Mrs Smith is now enjoying good health again and has returned to work on a part-time basis. MoneySolve helped Mr and Mrs Smith by organising a formal individual voluntary arrangement with their creditors to resolve their credit card debt. They now pay one affordable monthly payment and are looking forward to being debt free in 5 years time.