Each of our experts have selected real examples of how their particular specialism can assist people resolve their debt concerns in the right circumstances. We hope that these case studies help to demonstrate the theory in real terms. We also trust that they will illustrate how those who make the brave decision to take act on their unmanageable debts can quickly find relief in the situation being brought under control.

I used to work as a Staff Nurse on a surgical ward in a hospital. When unsociable hours and weekend working was taken into account and with a little bit of overtime myself and my diabetic husband had a fairly comfortable existence. In 1999 my husband John took a turn for the worse meaning he had to give up work and I had to change my job to give me regular hours so I could always plan when I would be with John. The loss of John’s wage plus my drop in pay put a great strain on our finances. Soon the Mortgage, utilities, food and credit card payments were taking more that I was making. To compound things I got a consolidation loan to help pay off the cards. This, though seeming to be the way forward, only made things worse. Soon because of missed payments on my cards the phone calls began and didn’t stop. Thankfully they did not have my works number but John, being at home, took the brunt of them. Even though they would not speak to him about my affairs he knew full well what it was about as we had discussed our problems many times before. I could see no way out of the dilemma and it started to affect us both badly. All the time the debt was mounting but the income remained the same.

A friend mentioned a little known product to me called and Individual Voluntary Arrangement and introduced me to an insolvency practitioner. This person came to our house and explained exactly what an IVA was. What she also did was to explain our other options such as a debt management plan or bankruptcy. After a lot of talking and examining of our finances it was decided that our best course of action was an IVA. The plan as people are well aware was to run for 60 months and I would pay so much a month. At the end of this would be free of all my debt. Seeing all the IVA’s at the moment and the penal repayment programme that some people agree to I can only be thankful for our IP’s foresight in ensuring that though we paid a lot it left us enough to live on. Sometimes by being extra frugal we could afford to go out to the pub and have two meals for the price of one and a pint. Without this “escape” I am not sure we could have lasted the 5 years. After the IVA started the phone calls ceased. What a blessing. To know you could come home and answer the phone knowing that it was not an irate call centre operative hassling you for money instantly lifted a black cloud.

My bank which I had been with for 25 years instantly withdrew my switch card and cheque book. Thankfully they did give me a solo card and allow me to keep my current account. I must admit to being forever grateful to my bank for that as both a personal loan and one of the credit card debts was with them. Six months into the IVA they even gave me my cheque book back. Even so through the IVA we had our ups and downs. We were burgled one night and my laptop was stolen. Foolishly trying to save money I had cancelled my home insurance meaning that I had no cover. I spoke to my IP who changed the payment schedule and added a couple of months to the payment plan but at least it enabled me to get a new and, workwise, necessary computer. Five years later and with no holidays, few excursions, and lots of free walking in the sunshine we were finished. The property was jointly owned and at the start of the IVA was in negative equity. Consequently there was no 4th year equity release clause.

Post IVA things are so different. Suddenly I had over £600 of disposable income and no debts. What a feeling, not to mention the thought of unrestricted shopping. Not that I have anything against charity shops but the feeling of being able to see and pick clothes that were new and fitted me correctly was wonderful. Yes, I did splash out but after 5 years of frugality I was going to enjoy myself. Common sense did prevail and after two months I was thinking of savings. Within months of finishing my bank was asking if I wanted an overdraft. I have accepted one but it is there for emergencies. Well in the 3 years since I have finished the IVA I have not had one yet. I feel that one of my problems was that I lived on my overdraft. I actually went into my bank manager and had a chat with him regarding my past problems and future intentions. He got me a switch card within days but a credit card took him nearly two months. The limit is not huge but given the past problems the level of trust is. They even gave me a £12000 loan for badly needed house repairs. No, I am not going down the slippery slope of debt. Trust me lessons have been learnt. Everything has been carefully calculated and budgeted for. I don’t want it to but I can cope with mortgage, utility and petrol increases without hitting a crisis and, I think, that is what should have happened in the first place. I am a member of both Experian and Equifax and monitor my credit report regularly. I have even looked at their idea of my credit rating and three years post IVA it is very good. Having borrowed all that money from differing sources I felt it was incumbent on me to repay as much as I could. Though it was not everything I had borrowed finishing the 5 years gave me the satisfaction of knowing I had done my best and not run away from my responsibilities. I salute and admire everyone in an IVA who is trying to do just that. And remember, though it seems a long time it will pass and there is light at the end of the tunnel. Good Luck!

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