Apply online and become debt free - Case Studies
An overview of how our services have helped our clients.
Mr and Mrs Morgan's Case Study
Mr and Mrs Morgan spoke to one of our advisors in February 2008 after they made an application for a consolidation loan through a finance broker but were declined. They were adamant that they only wanted a loan, and didn't need anything else. They are a typical family both parents work, with two young children, but beginning to fall behind with their payments, partly because they come out at different dates of the month they told us.
They have five outstanding creditors, two credit cards, one loan and two catalogues, their contractual payments should be £ 514.00 per month and the total balance outstanding is £ 8400.00
After speaking to Mr and Mrs Morgan about being declined for a loan, they agreed for us to look at their situation to see how we could help.
After assessing their situation, we realised that they had been cutting back on their monthly food bill in order to meet their contractual payments. Although they were just meeting their repayments, it was only the minimum that they had been making.
We explained to them that most of the payments that they were making had only just been clearing the interest and only a very small amount was actually clearing the balance. Although they knew this, they didn't really understand what this would mean to them as a family.
After working out how long it would take to clear their outstanding balances, they were slightly dismayed, and so would you be if you were cutting back on your food bill to repay your debt, only to realise it will take you at least 10 years.
We explained to them that they shouldn't be facing hardship, especially for 10 years, and that we could help.
Mr and Mrs Morgan are now on a financial management plan with Ashley Park Debt Solutions, all of their creditors have agreed to stop the interest and charges, and their debt will be clear in less than four years, and they can afford to pay all of their bills each month, and buy food as they should be.
Their new repayment to their creditors is £ 185.67 per month.
Mrs Brown's Case Study
Mrs Brown was passed to us from a mortgage broker in July 2008. She was very upset due to that her partner who was self employed, and had fallen behind with his self assessment tax. They own their own property.
She works part time as she has a child, and her partner has now decided to become privately employed because of the problems he had being self employed. He works full time.
Mr and Mrs Brown has tried to speak to the tax office directly to come to an arrangement to clear what Mr Brown owed, but they refused and said unless they cleared what was owed immediately , they would look to take possession of their property.
Mrs Brown was naturally upset about this and had even believed and came to the decision in her own mind that they would be made bankrupt and lose everything they had worked for.
They have 25 creditors, their total outstanding balances are £ 33,000 and their contractual payments should be £ 1300 per month, this is without the tax bill which is being demanded in full for just over £ 10,000.
They cannot get finance from anywhere and are worried.
We have successfully managed to stop the action for this client by placing them onto an IVA (individual voluntary arrangement).
We put them forward for their IVA, which their creditors have accepted. This now protects them against all further action, and legally protects our client against future creditor contact.
They now feel as if they can relax and they know that their house is protected.
Their IVA will run for 60 months, all of their interest has been stopped, and they are repaying what they owe at £ 325.00 per month.
This also means that they will write off £ 13,500 of the debt they owe, and that at the end of the IVA, they are completely debt free.
Mr Witt's Case Study
Mr Witt was passed to us from a mortgage broker, who was also a friend of Mr Witt's family and had been for a while.
Mr Witt had a lot of credit outstanding that he could not manage. It was also beginning to affect his health, and he was losing weight as he couldn't eat because of stress.
Mr Witt is a homeowner, but because the housing market has crashed and he has a secured loan outstanding, he has negative equity.
He cannot get a re-mortgage or a secured loan because of the negative equity.
He was unable to maintain any sort of payments and his relationship was suffering and just wanted help.
He has ten outstanding creditors, totalling £ 46,800 and his contractual repayments should be £ 446.00 per month. This was for nine credit cards and one loan. The interest was increasing his debt everyday he was missing his payments. He was also getting late payment charges.
After assessing his situation we recommended a Trust Deed as the best option for him.
Mr Witt asked us to proceed as he really needed something sorting.
His Trust Deed was not only accepted, but it was also protected. This now gives him legal protection against further action and he knows he can afford his repayments.
As Mr Witt had negative equity in his property, we were also able to protect any future equity he may have.
Mr Witt will now be debt free in 36 months, and all interest and creditor contact is stopped.
His repayments are £ 225.00 per month, which means he will have £ 38,700 written off.