Debt Action Helps Client to Keep His Family Home

The client called our Debt Action service.

He was married with two children, self-employed and a homeowner. Although, the client’s mortgage and other priorities were up-to-date, he was concerned about the level of his non-priority debt.

He had accumulated this over several years when his business had slowed down. He had used the credit to top up his income. In total, the client had debts of £44,000 in credit cards and bank loans. The debt was having a dramatic impact on his home life both financially and emotionally. He was afraid that he and his family would lose their home.

Our Debt Adviser quickly assessed that all the debt was personal debt and not tied to the business. The client’s biggest fear was that he would lose his home. He explained to the adviser that there was approximately £80,000 equity in it. Together, they completed a financial assessment and the adviser provided the client with some budgeting advice on how to make the most of his income.

Carrying out this assessment showed the client had £200 per month left over to offer to his creditors. The adviser then discussed what options the client had. The client decided he wanted to go for an Individual Voluntary Arrangement (IVA), as an IVA is legally binding and, if he maintained repayments, creditors could not take action to take his home.

The adviser was able to refer the client to our referral partner Payplan and he is now in the process of setting up a plan.

Client was delighted with the service as it has taken the stress and worry out of his situation.