Debt Service helps client deal with unaffordable debt, enabling him to make a fresh start
The client is in their 20s, single with no dependants. He has recently lost his job and is now in receipt of Universal Credit while looking for another job.
The Full Picture
He lives in his family home rent free, but will be expected to pay board and keep once he gets back into employment. Client has no assets or savings.
Client has struggled financially for a few years due to a drug addiction. He is now getting support with his addiction and has been clean for 6 months. Client had run up approximately £12,000 of unsecured debts (mostly loans, credit cards and mobile phone contracts).
How We Helped
The Debt adviser requested a copy of the client’s credit file to obtain details of the debts outstanding. The adviser completed a financial statement for the client, which demonstrated that the client had no disposable income to offer repayments to creditors. Even if the client has an income from employment, this is likely to be on minimum wage and will just cover his basic living expenses.
The adviser explored all options available to the client to deal with their debt. They explained what was realistic and affordable in the long term, based on the client’s circumstances. The client advised that they felt a Debt Relief Order (DRO) would be their best option.
The Debt adviser explained they are an approved intermediary and will complete the DRO application online for the client.
The client needed time to save up the £90 fee and once they were in a position to afford this, the Debt Adviser completed the application for the client.
The client was relieved that his debt has been dealt with and he is able to make a fresh start. He has a few job interviews lined up and hopes to be back in employment very soon.