» Lending a helping hand
Bond partners LLP can assist you in escaping the vicious cycle of debt
Mr. X is a twenty-six year old financial adviser employed by one of the high street banks.
At the age of eighteen he obtained a personal loan to buy his first car. He found it very easy to obtain the credit and was able to make the monthly repayment from his salary. Finding that credit was so easy to acquire, he took advantage of a full range of credit card offers and he began to spend more and more money, using these cards. Eventually his monthly repayments totalled almost as much as his monthly salary, so he began to use one card facility to make the payment on another. Mr. X was now on the slippery slope, juggling minimum payments and shifting balances between cards, never achieving repayment of any card balance in full as mounting interest and late penalties were compounding his debt.
For seven years Mr. X continued to make payments to his card suppliers. He estimates that he had paid out a total of approximately £100,000 and still was unable to clear the balances and move on with his life. During this time, Mr. X’s girlfriend was also using her income to support him, her family rallied support by allowing him to live with them in their home, free of charge, while Mr. X tried to stabilize his situation. Unfortunately, Mr. X could not get control of his finances, so his girlfriend and parents eventually gave him an ultimatum, stating that either he would have to start contributing or move out.
By this point Mr. X still had unsecured debts that were totaling approximately £70,000. Bankruptcy was not an option, as being a financial advisor for a bank he would lose his job.
Mr. X contacted Bond Partners LLP for our expert advice and a complete review of his circumstances.
Our client decided to propose an Individual Voluntary Arrangement (IVA) and in February 2007 his creditors accepted his proposal. His proposed contribution of £500 per month over five years will repay his creditors just over 32p in every pound, he is now able to get his life back on track and he has been able to continue his employment as a financial services adviser.
Previously our client had been paying virtually all his £2300 monthly take home pay to his creditors. He will be debt free in five years and will have achieved writing off over £45000 of his unsecured debts.
