Debt Management Examples

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Example 1

Mr J and Mrs L Smith were paying £850.00 per month on their unsecured credit agreements

They had a total debt of £20,000.00 split over 4 creditors.

Mr Smith had his overtime cut and Mrs Smith had her hours changed at work to part time. It was clear that they could not maintain £850.00 per month. After completing a budget planner we discovered they could afford £200.00 per month.

Example 2

Mr R and Mrs J Town had credit commitments totalling £799.00 per month and now they are paying £150.00 per month.

They have a total debt of £52,947.00 split over 5 creditors.

Mr R Town has completed a large extension on his property and was planning to re mortgage and clear the high interest creditors. Unfortunately the property market has dropped and he was unable to do the re mortgage he required and consolidate the debt. He was therefore unable to continue to meet the high monthly payments.

After completing a budget planner we identified that they could afford £150.00 per month.

Example 3

Mr K and Mrs P Henry were paying £980.00 per month on their loans and credit cards. After assessing their income and expenditure we identified that a revised monthly payment of £380.00 was all they could afford to offer their creditors.

They had a total debt of £45,735.00 split over 10 creditors.

Mr Henry is a self employed builder, and his work has slowed dramatically. It was clear that they could not maintain £980.00 per month. After completing a budget planner we discovered they could afford £380.00 per month.

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