Mr P had a full time job and no debt, he never had a credit card or purchased from a catalogue until 2 Christmas’s ago he suffered a wage drop; his financial situation was never the same.

Desperate with Yuletide guild, Mr P got credit cards and bought from catalogues to ensure his two children had the Christmas they’d always had. Before he knew it, his debt spiralled out of control.

He contacted his creditors (wise man!) and they reduced some of his monthly payments. He also tried to borrow money from the bank to consolidate his debts, but interest and other charges still were accruing and only worsened the problem.

That’s when he contacted ClearDebt and got our objective advice: We explained that an IVA would freeze interest on all his debts from the time his IVA proposal was agreed.

For an IVA to work, however, the debtor must be confident they can keep up the regular monthly payments agreed in the IVA. Mr P was desperate and determined to pay back his creditors as much as he could.

We arranged an IVA with a realistic monthly payment of £200: His creditors will get 71p/£ over a 5 year period. We also helped Mr P create a budget to ensure that the payments could be met throughout the IVA and beyond – reducing the chance of him getting in such a situation again.

 Thank you very much for all you have done over the last few weeks, you have made it a lot less stressful. It has been wonderful to have someone to explain everything in detail as it has happened.