Recent Cases
Case seven: IVA - £20,500 cleared for £195
This customer came to us when they were on a debt management plan. At the time they were paying £135 a month to support their debts of £20,500. The customer recognised that at the current rate of repayment it would take 13 years to clear their debts. This would be even longer were interest to again be added to the account. Whilst £135 was not sufficient to get the creditors to agree to write off the debt by redirecting £67 (gross) pension contribution into the IVA this resulted in debts being cleared for £195 per month.
| Customer's original financial situation | ||
|---|---|---|
| Creditor | Debt Outstanding | Monthly Payment |
| Lloyds TSB | £9,500 | |
| Barclays | £7,000 | |
| Capital One | £2,000 | |
| MBNA | £2,000 | |
| Total | £20,500 | £135 |
- Solution selected
- IVA £20,500 written off for £195 per month.
- Reasons for selecting an IVA
- Customer wanted to accelerate the time period to becoming debt free.
- Benefits for the customer
- Debts will have been cleared in 5 Years. More than seven years quicker than DMP.
- The pension scheme would allow added years to be bought when finances were corrected.
Case One: Unsecured Loan - £10,000 with minor arrears cleared for £147.60 per month.
Case Two: Unsecured Loan - £24,000 with arrears cleared for £392.83 per month.
Case Three: Secured Loan - £44,000 in debts cleared for £371.08 per month
Case Four: Secured Loan - £60,000 cleared for £450.54 per month
Case Five: Debt Management Plan - £27,000 managed for £250 per month
Case Six: Individual Voluntary Arrangement - £127,000 cleared for £1122 per month
Case seven: Individual Voluntary Arrangement - £93,000 cleared for £690 per month.
Case Eight: Individual Voluntary Arrangement - £44,000 Cleared for £390 per month
Case Nine: Individual Voluntary Arrangement - £20,500 Cleared for £195 per month