A case study about Non-Profit Debt Advice Support

Mia and her two daughters share a three-bedroom semi. Up until recently, she and her husband split all household expenses and childcare costs 50/50.

This all changed when he moved out suddenly, and Mia was left to manage everything alone.

The breakdown of their 20-year marriage understandably hit Mia hard. Emotionally shaken, she had to come to terms with raising her girls on her own. And that’s before trying to work out how she was going to pay the bills, on her salary as a part-time retail assistant. All while going through a stressful divorce.

Overnight, Mia’s financial situation had gone from stable to vulnerable. She struggled to keep up with payments, and soon fell into arrears on the mortgage. Not long after that, debt letters started arriving about the mortgage, credit cards and personal loans – and her creditors began to call.

Mia felt overwhelmed, embarrassed and isolated. Unable to emotionally cope with the situation, she ignored the calls and hid the letters under a pile of paperwork. She just wanted the problem to disappear.

The situation was taking a toll on Mia’s mental health, and she didn’t know where to turn. Thankfully, Mia’s mum found the letters one day when she was looking after her grandchildren.

She gently encouraged her daughter to open up and tell her everything. Mia immediately felt like a weight had been lifted – and with her mum’s support, she decided to look online for help in facing her debts.

To her surprise, she found a range of free, non-profit debt services – all dedicated to supporting people like her through their financial challenges. She chose the one that sounded most right for her and gave them a call.

The advisor that Mia spoke to didn’t judge. They simply listened, explained her options clearly and discussed a way forward. Talking to her about the importance of keeping up regular payments, and the impact that not paying the debt would have.

They explained to Mia they could help her make an arrangement to pay less per month – but pointed out that it would likely significantly reduce her credit score, as it’d show she’d had trouble making the payments. They advised that this could stay on her credit file for up to six years, which could harm her chances of borrowing money in the future.

Although Mia was worried about the impact on her credit file, the advisor told her that making an arrangement and keeping to it can prevent more serious consequences. These include defaulting on the payments and possibly facing legal action like a County Court Judgment.

Armed with this information, Mia felt the best thing for her to do was come to an arrangement with the companies she owed money to. To her immense relief, the non-profit debt organisation contacted them – and negotiated an affordable payment plan on her behalf. She felt like a huge burden had been lifted, and felt in control of the situation for the first time in months.

Mia is currently paying the money back in regular, manageable amounts, and starting to get her finances back on track. Newly confident that she can deal with calls and letters from her creditors, Mia now feels ready to move on with her life.

“

I felt like I was drowning, but they threw me a lifeline. I finally believe I can get through this. In hindsight I wish I’d reached out for help sooner.

Mia

Mia wanted to stabilise her finances and provide a secure home for her daughters. Talking to a non-profit debt organisation helped rebuild her credit and confidence, so she could take back control of her life. And taught her valuable financial skills so she could avoid debt problems in the future.