Frank is single, living in private rented accommodation and working full time. Despite having a regular income, he was struggling to keep up with his financial commitments.
Client Profile:
Frank is single, living in private rented accommodation and working full time. Despite having a regular income, he was struggling to keep up with his financial commitments. Frank had entered an Individual Voluntary Arrangement (IVA) but could no longer afford the repayments. As a result, he had missed several IVA contributions, fallen behind with priority bills, and was relying on family to cover essential costs such as food.
Reason why client needs advice:
Frank was referred to us by a partner agency to help him with debt advice, after he requested support. Due to the nature of the referral, he was called by a debt caseworker. The caseworker’s assessment showed that the IVA was unsustainable and unsuitable for his circumstances. If it continued, it would have deepened his financial difficulties and increased his reliance on borrowing.
What we have done to help the client:
After the initial assessment and identifying his issue, the caseworker carried out a full financial review, explored all available debt solutions, and explained the pros and cons of each option to help the Frank make an informed decision. The adviser also provided bespoke budgeting analysis and advice, leading to a reduction of his expenditure. During the analysis, some gambling charges were identified, he was also advised on how to prevent this to become a problem, and he decided it wasn’t an ongoing issue or addiction and he would stop gambling immediately to avoid getting into more financial strain.
After careful consideration, Frank chose to apply for a Debt Relief Order (DRO). We supported him in bringing his IVA to an end, gathered the necessary paperwork, and submitted the DRO application on his behalf.
Outcome:
The DRO was approved, writing off £22,731.38 of debt.
Through budgeting and gambling prevention advice, we help Frank save £100/month
Frank also will be able to afford repayment of £2000 in debts not eligible for the DRO, avoiding escalation and stress,
He is now free from unaffordable repayments and can prioritise essential bills.
Despite working full time, Frank now has a realistic chance to regain financial stability and reduce stress.
Clients feedback:
"Hi, I’m sure you might have seen as well but just had an email confirming that my DRO has been approved. Just wanted to say a massive thank you for all your help over the last week or two, it really is much appreciated, it’s all a massive weight off my shoulders now."
NB: Names and certain details have been changed to protect our clients’ anonymity.