A debt solution sometimes not discussed.

Graeme recently met up with a Woman from Liverpool who was seeking debt advice. We’ll call her Annie. She had spoken with a number of large organisations that had offered advice to her on the telephone. She had been advised to enter into a debt management plan by some and to apply for an individual voluntary arrangement by others.

Annie was not very good on the telephone because she thought everyone spoke too quickly for her to understand.

An opportunity to meet and speak with Graeme in her own home, at her convenience appealed to
her.

It very quickly became apparent to Graeme that the advice she had been given on the telephone was not appropriate. There was a solution available to her that was not discussed or recommended.

What was it? A debt relief order.

Annie had approximately £8,000 of debt with monthly payments in excess of £350. She could not cope with these payments, her part time employment and benefits would not stretch that far. She was robbing Peter to pay Paul. Her rent had to be her priority and she was falling behind with her council tax and utilities. She had no savings or assets and no family to help her.

Introduced by the Government a couple of years ago debt relief orders are for people with monthly disposable income of less than £50, debts of less than £15,000 and no assets with a value of more than £300.

It cost Annie £90.00 to set up the debt relief order through the county court. The order will last for twelve months. Annie only has six months left and then her £8,000 of debt will be written off by order of the court. During the year that the order is in place Annie doesn’t have to make any payments to her creditors or the court. So for an outlay of £90 she has got herself out of debt.

There are obviously some drawbacks with a debt relief order. She can’t apply for credit while she is under the order and it will affect her credit rating going forward. Annie had no intentions of borrowing money in the future so saw this as a price well worth paying.

The moral of the story? If you are seeking debt advice in Liverpool please ensure that you seek advice from someone who will discuss all of your options and help you choose the one that is best suited to your needs and not theirs.

People seeking debt help can speak to Graeme for guidance or to arrange a no obligation meeting on 08009788834.