Recent Cases
Case Four: Secured Loan - £60,000 cleared for £450.54
This customer had borrowed heavily whilst in a relationship. This was fine whist the couple were together. When they split up the level of borrowing simply became unaffordable. Fortunatley the customer had a sizeable amount of equity in her property. Her existing mortgage lender was not prepared to support a further advance. Through organizing a second charge we were able to reduce monthly costs by £1153 per month.
| Customer's original financial situation | ||
|---|---|---|
| Creditor | Debt Outstanding | Monthly Payment |
| Halifax (CC) | £9,674 | £100 |
| MBNA (PL) | £6,244 | £125 |
| Citi Cards(CC) | £1,489 | £80 |
| Halifax(CC) | £4,006 | £100 |
| Co Operative (CC) | £585 | £80 |
| Clode Retail (SC) | £263 | £54 |
| Capital One (CC) | £1,728 | £80 |
| Comet (SC) | £2,535 | £100 |
| Mastercard | £10,094 | £125 |
| HSBC (PL) | £9,000 | £321 |
| Black Hourse (PL) | £3,000 | £40 |
| Barclay (PL) | £1,703 | £119 |
| Monument (SC) | £1,608 | £74 |
| About Catalogue (C) | £231 | £30 |
| Marshall Ward (C) | £1,378 | £50 |
| House of Fraser (SC) | £8,785 | £125 |
| Total | £62,328 | £1603 |
- Solution selected
- Secured loan with First Plus 8.0% @ £450.54
- Reasons for selecting an secured loan option
- Property existed with just sufficient equity to pay off existing unsecured loans with secured loan
- Credit quality whilst not excellent (arrears existed on a number of the above debts) remained acceptable to get a low cost lender to provide the finance.
- Benefits for the customer
- Monthly costs were reduced by approximately £1153 per month
- No impact on credit rating
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