DebtMatters can help people with debts ranging from £10,000 to well over £100,000. The example below is based upon an actual case that we have recently handled and is typical of the way in which we can assist people to clear their debts once and for all.

This is a typical example of a DebtMatters case. We have an excellent track record for solving people's debt problems and are successful in more than 90% of the cases that we present to creditors. In all of these cases creditors agreed to accept smaller monthly repayments. We got them to freeze interest on the amounts they were owed and to write off what couldn't be repaid. In the vast majority of these cases creditors agreed to accept between 20% - 70% of what they were owed in full and final settlement of their outstanding debts, repaid over a sensible period.

This is also a typical example in that at no time will Mr and Mrs C ever receive a bill from us for any of the work that we have done for them. Their arrangement was structured in such a way so that the costs of the arrangement are included in the £28,900 that they are required to pay.

         

Mr and Mrs C from Cumbria

Mr and Mrs C from Cumbria owed a total of almost £64,000. This debt was made up of a number of credit cards, personal loans, catalogue debts and a bank overdraft. The amount they needed to pay in order to keep their repayments on these debts up to date was around £1,350 per month.

Following a downturn in Mr and Mrs C's circumstances they suddenly found themselves unable to maintain their borrowings at this level.

Mr C's income dropped to £1,248 per month and Mrs C was forced to give up her job and accept a part-time position on an income of around £300 per month.

Mr and Mrs C owned their own home in which there was currently around £15,000 of equity. Their mortgage payments together with all their other household expenses meant that their monthly outgoings (not including their credit commitments) totalled £1,183.

Mr and Mrs C contacted their creditors to make them aware of their situation and to attempt to negotiate reduced monthly payments with them. Generally their creditors were sympathetic towards their circumstances and some agreed to accept reduced repayments. However not all the creditors were so accommodating and some chose to continue to charge interest on the debts whilst others insisted on the debt being repaid under the original terms.

Realising that they would struggle to resolve their situation alone, Mr and Mrs C contacted DebtMatters who recommended a Voluntary Arrangement and within 3 days a proposal had been put together.

Working with one of our skilled advisers an offer to pay back £28,900 in full settlement of the couple's debts of £63,896 was formulated. This consisted of monthly payments of £365 over a 5-year term followed by the release of £7,000 of equity from their property by way of a remortgage at the end of the fifth year.

This proposal was presented to Mr and Mrs C's creditors who accepted it. In addition their creditors agreed not to pursue Mr and Mrs C for payment at any time. They agreed to freeze all interest on the debts and confirmed that at the end of the arrangement they would write off anything that the couple had not been able to repay, which in this case is £34,996 (55% of what was owed).

Within just a few weeks of our initial contact, everything was sorted out. All Mr and Mrs C have to do now is to make their payments, after which they will be totally debt free.