Klaudia was struggling with unsecured debts over £50,000 made up of loans, overdrafts and credit cards.
She took out a consolidation loan of £18,000 but this still left her with around £25,000 other debts with minimum payments in excess of £500 per month.
Klaudia struggled on for a few years but ended up with even more debt as interest had been added to her loan and she had to use credit cards to fund everyday living.
Klaudia had a property she was keen to protect and was desperate to avoid bankruptcy. She was referred to The Debt Advisor Ltd and it appeared an IVA offering her surplus of £368 per month for 5 years would allow her to repay around 34% of her unsecured debt.
As the property was worth considerably less than the mortgage, it was unlikely that in year 5 of Klaudia’s IVA, she would have any equity in the property and would be able to conclude her IVA after 60 months.
Monthly contributions:
48 x £368
12 x £617
(Creditors requested an additional 12 payments at the meeting of creditors)
To speak to one of our advisors confidentially about debt solutions, you can call us directly on 0161 868 2500. You can also apply for debt help or contact our team.
The Debt Advisor Ltd is authorised and regulated by the Financial Conduct Authority (FCA) to provide debt advice to individuals. The Debt Advisor Ltd is on the Financial Services Register FRN 659920. Registered Office: 18-22 Lloyd Street, Manchester, United Kingdom, M2 5WA. Company Registration: 6248441. 0161 868 2500 | advice@thedebtadvisor.co.uk
No fee is charged for the initial advice. The fees, risks & benefits of all suitable solutions will be discussed. Fees apply if you enter a debt solution with us (for England, Wales and N. Ireland) and will affect your credit rating. An IVA will be listed on a public register.
Free and impartial debt advice is available at www.moneyhelper.org.uk
