Author: plymouthfocus

Owing over £60,000 Fred and Wilmer did not know what to do. Most creditors came back to us with an outstanding amount and gave us a month to finalise a financial statement without hassling the clients any more. But not all and we did support clients through this. We went through an income and expenditure with them and it showed they could afford around 300 per month to their creditors.

When Fred & Wilmer first came to see us Fred was earning a good wage. Wilmer had also been bringing in a good wage until recently, but had given up work because of illness. So they suddenly found themselves unable to pay all the bills they had previously been managing. They had a house with equity but already had one loan secured on the property in a panic they placed the house on the market thinking it was their only way out. They had eleven creditors to whom they owed over £60,000!

How we worked with Fred & Wilmer

We sat down with them and listed all their debts, then wrote to all creditors informing them we were assisting the clients.

We went though their options and they realised selling the house was not the only solution and decided to take it off the market.

Most creditors came back to us with an outstanding amount and gave us a month to finalise a financial statement without hassling the clients any more.but not all and we did support clients through this. We went through an income and expenditure with them and it showed they could afford around 300 per month to their creditors.

We finalised the statement and sent this to them, with most accepting the offers. Regular payments were made from the client to the creditors. We reviewed their financial statement after 6 months, updated their income and expenditure and sent out another financial statement to creditors.

For Fred & Wilmer this allowed a year with a manageable situation, without the stress of creditors constantly contacting them. This gave them the space they needed to realise that they did actually want to sell the house and clear their debts in full. For the creditors, they were still getting paid monthly and ended up getting their money after the sale of the house, without any unnecessary court action and costs.

This gave Fred & Wilmer the time they needed to plan their future. In the end they were able to downsize their property, and reduce their long term payments to enable them to live debt free, within their income.

Mary was struggling with separation, debt and mental health issues due to the emotional time and needed some support and guidance with the debt solution. Within twelve months Mary was able to pay off her debts.
When Mary (name changed) first came to see us, she had just separated from her husband. She was still in the marital home, but with fewer possessions and furniture. She also had to deal with some debts which had been run up by her husband prior to the separation, as well as coping with bills now that she was living on her own. Mary was also struggling with her mental health issues due to the emotional time and needed some support and guidance with the debt solution.

How we worked with Mary:

We first helped Mary to complete a disability living allowance form, which enabled her to get some additional income. This was a big help and is a benefit that does not alter, even if Marys income was to increase.

We also looked at the debts that Mary was struggling to deal with.

These were rent and council tax arrears and four small (doorstop lenders, telephone and catalogue bills) owing just under 2,000.

We helped Mary to work out which debts were most important to pay (Priority Debts) and how to then deal with the other debts.

We went through an income and expenditure sheet with Mary which showed she had approximately 50 per week to offer her non-priority debts after paying her priority creditors. We then worked on Marys behalf and offers were made to creditors in accordance with how much was owed to them, in a way that Mary could afford.

We also helped Mary to apply for a Community Care Grant to buy essential new furniture Just over a 100 was awarded towards this, and as it was a grant she did not have to pay this back!

Within twelve months Mary was able to pay off her debts.