Debt: £24,000                               Was Paying:    £750/month
                                                      Now Paying:    £350/month

Scott is single, aged 28, and a private tenant working for an electronics company.

Over the last 4 years he has complemented his income of £17,000 per year, with credit cards, overdrafts and store cards. He has not purchased luxury cars or been on any expensive holidays

He currently owes £24,000 on 7 credit cards. The monthly payments were never a problem for him, however after injuring his ankle, this resulted in a two month period off work and he fell behind with his repayments.

Scott’s income dropped significantly as his employer only paid bonuses to employees on-site.  This caused him to fall behind with the repayments on his credit cards.

When Scott returned to work, he tried to catch up with repayments but due to the arrears that had built up he needed to repay £758.00 to clear the arrears.

This just wasn't possible and as the months went by, the credit card companies continued to add further interest and charges for exceeding his credit limits.  In addition to this were the constant phone calls and letters due to the arrears.

Scott approached Debt Plan Direct and after completing his monthly budget, it was clear that he was only able to pay his creditor cards a total of £350.00 each month.

Debt Plan Direct were able to set up a debt management plan for Scott, he paid £350.00 each month via standing order just after he had been paid and Debt Plan Direct were able to get the majority of the interest stopped on the credit cards.

He now has a realistic chance of becoming debt-free within 6 years.

CCJ Means a Debt Consolidation Loan is Not Possible.

Debt: £2,370                              Was paying: £445/month
                                                   Now paying: £158/month

Jane had a dispute with her mobile phone supplier about her bill. She refused to pay it and it was referred to a debt recovery agency. She still refused to pay it and this escalated to a CCJ. The client does not have a high level of debt but due to the CCJ she cannot consolidate her debts with a loan. She is paying £39.50 per week, which is the maximum see can afford.

Debt Management Only Solution For Period of Unemployment.

Debt: £12,950                           Was paying: £350/month
                                                  Now paying: £180/month

Janice had affordable credit repayments until her husband lost his job, halving the household income. Two months later their savings were running low so they decided to look for a consolidation loan to reduce monthly payments.

They were for refused for loans as their income was too low and they were not homeowners. Soon they would start to miss payments and needed a solution. The client looked an IVAs but her husband would be returning to work and an IVA would be too permanent as their circumstances would be changing. Debt Management was the right solution for them because the payments were flexible and could be increased when they were both working again.

CSA Payments Make Creditor Repayments Unaffordable.

Debt: £28,000                         Was paying: £850/month
                                                Now paying: £400/month

Jason has an income £1480 per month, and was able to manage repayments on debts of £28,000 while living with his partner and child. The relationship broke down and the client was still able to afford repayments until CSA demanded over a 3rd of his income. Now unable to keep up with the repayments, debt management is the only option. An IVA is not possible as he has only 2 creditors. He is not a homeowner so can't get an unsecured consolidation loan for such a large amount.