Debt Management Examples

Examples of Debtsorters Debt Management Plans

Debt Management is the process of going over the income and expenditure to see how much is available to go to your creditors on a monthly basis. Below are a number of examples of how Debt Management can be applied to different circumstances, here you will be able to see that in each case the overall amount needed to go towards the debts has been reduced, freeing up funds to go towards the monthly essentials such as Mortgage/Rent, Council Tax, Utility bills and Food.

Example One.    Mr. D James

Income: £12000
Creditors: 3
Amount of Debt: £5300
Was paying: £ 270 p/m

Now paying:£110 p/m

Mr James was paying his creditors £270 per month, he is single and works in construction. Mr James income was recently reduced with the loss of overtime that made his income up to a level where he could afford to pay his all of household bills and his creditors. Mr James has recently missed one month’s rent. Using Debt Management we have been able to reduce the amount that is being paid to his creditors which has increased the amount available to maintain his essentials such as the rent.

Example Two.    Mr.s Davenport

Income: £19000
Creditors: 7
Amount of Debt: £27000
Was paying: £ 550 p/m

Now paying: £240 p/m

Mrs Davenport is Married and with two children. Mrs Davenport has used credit cards and loans to cover some of the family expenses over the years and does not want her husband to know about the debt, and does not want to do an Individual Voluntary Arrangement. We were able to reduce Mrs Davenports payments down and in getting the interest frozen on each of the accounts, the reduced payments are coming off of the balances.

Example Three.    Mr. & Mrs. Eden

Joint income: £32000
Creditors: 17
Amount of Debt: £63000
Was paying: £ 1200 p/m

Now paying: £450 p/m

Mr Eden has recently changed jobs and his income is a lot less than it was in his previous employment. Mr and Mrs Eden do not want to do an Individual Voluntary Arrangement as they have their house up for sale and intend to settle the debts using our debt settlement service, which may reduce the overall debt by up to 50%. We have been able to freeze the interest on 15 of the accounts and reduce the interest on the other two down to 0.5%. The monthly payments have been reduced down to an amount that they can now afford.

Example Four.    Miss Davidson

Income: £4000

Creditors: 4

Amount of Debt: £3500

Was paying: £160

Now paying: £80

Miss Davidson is on Disability Benefit and has a part time job that generates £4000 per year. Miss Davidson has struggled paying her creditors the £160 per month, maintain her monthly essentials such as rent, utility bills food etc and find the extra needed to help with her disability. Using Debt Management we have been able to get all of the arrangements in place with the interest frozen and now Miss Davidson can concentrate on her life rather than worrying about paying bills every month.

Example Five.    Mr Henderson

Income: £18000

Creditors: 4

Amount of Debt: £26800

Was paying: £360

Now paying: £150

Mr Henderson was with another Debt Management Company and transferred over to ourselves as he was still getting calls from his creditors after being on the plan for over six months and the arrangements were not in place. We managed to get the arrangement in place within a few weeks of Mr Henderson’s transfer to us and the calls have been stopped.