Mr & Mrs G had in the region of £28,000 of unsecured debts. They jointly owned their property and Mr G had a motor vehicle subject to finance. After reviewing their circumstances we established that the property had negative equity and as such was not at risk by entering into a Trust Deed or Sequestration.
After thoroughly reviewing their budget, they could afford to pay £400 per month towards a plan. Under a Trust Deed, they would be able to write off unaffordable debt after an agreed period of time.
Mr & Mrs G entered into a Trust Deed to enable them to use their disposable income to repay their mortgage as they approached retirement. They repaid a total of £19,200 into their Trust Deeds. Under a Debt Arrangement Scheme the plan would last for approximately 5.8* years.
*Subject to using a free advice agency for the Debt Arrangement Scheme.