Simon Woods has recently split up from his long term partner and has moved into rented accommodation. As he now has only his salary to rely on each month, he is finding it very difficult to meet the payments on his loan and credit cards after he has paid his rent and living expenses. In recent months Simon had started missing payments and had begun to receive phone calls and letters from his creditors with the threat of legal action.
Simon contacted Debtfocus and took advantage of our free Consultation where he was surprised to find that in total he owed £28,000 with a total monthly payment of £635.00. Debtfocus explained the various debt solutions that were available to Simon and they both agreed the best way to solve his problem was via an Individual Voluntary Arrangement (IVA).
Debtfocus put forward the IVA proposal to Simon’s creditors which was successfully accepted. This now protects him against any legal action, stops further interest and charges being added and reduces his monthly payment to an affordable £255 each month.
The IVA will run for 60 months which means that after paying back what he can afford, Simon will have written off the balance of his debts and will be completely debt free. The costs of doing a Voluntary Arrangement are also covered by the creditors so there is no extra to pay.