Case Studies

Debbie from Dundee

Debbie from Dundee is aged 21 and lived in a rented property with her flatmate. Debbie worked as a receptionist in an office which paid her an income of £11,000 per year.

Shortly after moving into her flat with her friend, Debbie found out that the company she worked for was going into liquidation and she would have to find another job. This was going to be a struggle for Debbie because she had already put new furniture and her share of the flat deposit onto one of her credit cards.

Since living costs for her new flat were already tight, Debbie had to use credit cards to afford to pay the rent and other expenses like food and her car. When Debbie eventually found another job four months later the total amount of money she owed was £6,000 across 5 different credit cards.

Debbie felt that the debt was unmanageable and decided to call Newtomorrow. Once one of our caring advisors spoke to Debbie we realised that we could try and freeze the interest payments and pay back the money through a Debt Management Plan.

Now Debbie pays an agreed sum of £230 every month to a debt management company who distribute the money on Debbie’s behalf. Debbie has now removed all pressure from her creditors and will be debt free in a just over 2 years.

Lindsey from Glasgow

Lindsey was a sales manager aged 39. One year ago her marriage broke down and she divorced. Lindsey kept the marital home and had two children to look after.

Lindsey had to reduce the number of hours she could work because she had to look after her children when child care became too expensive. Lindsey took several months off work due to stress and eventually resigned which meant she had no regular income. To cover her basic everyday expenses Lindsey used credit cards and overdrafts.

The amount of debt that Lindsey eventually had was £14,000 over 7 different creditors. Lindsey found that the hardest task was juggling her finances and noticed that she was paying too much money in interest on all of the cards.

When Lindsey contacted Newtomorrow she was ready to face the world and resolve her debt problems. She had been out of work for 5 months but had recently started a managerial role with another company.

Newtomorrow suggested that the solution for Lindsey was to get one manageable monthly loan. This put all of her debt in one place so she had just one payment and one low interest rate. Lindsey is well on her way to a simpler, stress free life without debt.

Steven from Edinburgh

Steven was 29 years old and married. He lived in a house he owned jointly with his wife.

He took advantage of a number of credit cards and loans. He lived significantly beyond his means for a number of years. Steven enjoyed two holidays a year and had two £14,000 cars- one for himself and one for his wife, Jane.

He realised he was in trouble when he had to take out a loan just to meet the minimum payments on all of his credit card debts. At this point he had debts totalling £30,000 and an income of £980 per month. Despite being in a considerable amount of debt Steven ignored the letters and telephone calls from creditors requesting payment.

His wife stayed at home to look after their two small children. As he approached his 30th birthday he realised he had no possibility of repaying his debts.

After a consultation with us, we recommended a Protected Trust Deed, and after the proposal was accepted by his creditors, Steven paid an affordable amount of £230 per month for 36 months, as well as releasing his share of the equity in his home (£5,250) after a period of 24 months. He also sold one of his cars for £3,600. The total repaid to his creditors was £12,530.

After this period Steven was completely debt free and this allowed him to look forward to his future without the worry of debt.