Mrs A is a full-time schoolteacher and extremely concerned about losing
her home. Her husband is a newly qualified driving instructor who was
severely impacted by the Covid pandemic.
They have been struggling with their unsecured debts for some time, often only making the minimum payments. They took a 6-month payment holiday on the mortgage during the pandemic and then another 3 months of forbearance. They have also been proactively contacting their unsecured creditors for payment holidays on credit cards and other loans.
At the point Mrs A spoke to PayPlan she could pay the priority debts and household bills with her salary but could not manage the credit card and loan payments without her husband's full income.
A Debt Management Plan - Helped this couple to see a way forward through a tough time.
PayPlan approached the unsecured debtors and agreed the terms of the Debt Management Plan.
The plan provided a structured framework to manage the £72,000 of unsecured debt, allowing the continued prioritisation of the mortgage. And with her husband's income expecting to return within time, the couple should also expect to see a healthy monthly surplus in the future, alleviating any concerns about losing their home.
‘PayPlan helped me to manage debts that I was previously struggling to pay.’
Mr & Mrs B have been struggling with their finances and needed some
extra support to manage everything. They have a disabled child and, due
to temporary but serious health conditions, Mr B had to leave his
employment for a few months. The couple were up to date with their
mortgage payments, but behind with payments on their council tax and
with their energy provider. And the frequent calls from other unsecured
creditors were very difficult to deal with.
PayPlan went through the couple’s budget, also known as an Income & Expenditure, which identified they were £90 short after all their bills and essential expenses had been paid each month.
A budget review with PayPlan - Helped to increase income and reduce outgoings for this couple.
PayPlan suggested Mr & Mrs B change to Universal Credit from legacy benefits which would increase their income by £78 per week. And to contact their energy provider and ask about the Winter Warmth Allowance for households claiming Disability Living Allowance.
They also encouraged the couple to shop around for a better deal on Home and Car Insurance, and to ask Sky & BT for more affordable packages.
Overall, the budgeting review helped them to go from being £90 short each month, to freeing up an additional £200 per month.
'I haven’t been put in this position before and it’s worried me sick. PayPlan’s budgeting guidance made a world of difference. I would have got myself deeper into trouble had I not spoken to PayPlan and now I have a plan to manage my finances each month.'
Ms C was working three part-time jobs before the Covid pandemic, but now
only has one from which she does not get a regular income. She has a
mortgage free flat that she receives monthly rental from and fosters a 3
year old child and receives a Guardian Allowance for fostering.
Ms C took a mortgage payment holiday during the Covid pandemic and is now making her monthly contractual payments to her mortgage, but due to her reduced income is behind with her payments on some priority debts and struggling to clear her mortgage arrears.
After completing a budget review with Ms C it was clear that most of her monthly surplus was needed to pay arrears on her priority debts such as the mortgage, council tax and water arrears. This meant her unsecured debts were rapidly escalating due to interest charges being applied.
A Debt Management Plan - Helped make payments to unsecured creditors more affordable for Ms C.
PayPlan contacted Ms C’s unsecured creditors and agreed the terms of the Debt Management Plan. By making Ms C payments to the unsecured creditors more affordable she can cover all her essential spending and work towards clearing the payment arrears on her mortgage, council tax and water rates.
‘PayPlan contacted all my creditors and helped me get manageable payments.’
Mrs D works full-time and is the sole contributor to the household
income as her husband was made redundant. The couple were up to date
with their mortgage but had significant Council Tax arrears and several
unsecured debts totalling £7,000 between them.
Mrs D is struggling to manage all the monthly outgoings on one income and needed some extra support to help her manage their household finances.
PayPlan went through the couple’s budget and explained the implications of failing to pay a priority debt such as Council Tax.
A Debt Management Plan and an Income & Expenditure review - Helped Mrs D to focus on paying their priority debt arrears in full.
PayPlan agreed a Debt Management Plan with the couple’s unsecured creditors making the payments more affordable. This meant Mrs D’s income could also cover the regular monthly payments towards her priority debts and the arrears that had built up on the Council Tax.
Mr D is actively seeking a new role and when successful, his income can be added to the Debt Management Plan enabling the couple to clear their debts sooner.
‘PayPlan helped me to manage the situation and focus on paying the priority debts in full.’
Mr E is the sole account holder on the mortgage and due to serious
health conditions was in hospital for some time and had to leave his
job. During this time, they were solely reliant on his wife’s income to
support them and fell behind with the mortgage payments.
Whilst completing a detailed budget review, PayPlan quickly discovered that Mr E was also struggling with other creditors and had fallen behind with his payments.
A Debt Management Plan – Helped Mr E focus on his priority debts and the associated arrears whilst making small contributions towards the other unsecured debts.
PayPlan took the stress out of managing multiple creditors. They liaised with all 16 creditors and agreed the terms of an affordable Debt Management Plan on behalf of Mr E.
‘I think this is right option for me, I’m contributing something… that’s great, it’s amazing I feel a lot more relaxed and scheduled. Thank you, you’ve been amazing.’
Mrs and Mr F are struggling with a reduced income because Mr F has been
in and out of employment as a knock-on effect of the Covid pandemic.
The couple have mortgage arrears but are currently paying their
contractual monthly mortgage payments and making ad-hoc payments when
they can towards reducing their mortgage arrears.
Their current household budget shows they have no disposable income left at the end of each month, so they are looking for extra support from PayPlan to help them manage their finances.
PayPlan completed a detailed household budget review with Mr F and provided long-term budgeting advice.
‘That seems to be a really good option, as three and a half years isn’t that long… at the moment I’ve been pretty much paying interest and not much is coming off the balances.’
If you think debt support and advice from PayPlan could help you, visit www.payplan.com.