Alex bought his home a few years ago, where he lives with his partner Katie and their three-year-old son. He’s been a freelance graphic designer for over fifteen years, which pays reasonably well but the work is inconsistent. Katie works part-time, mainly to cover the high nursery costs.
Like many people, Alex had managed to collect a lot of debt without realising. Over the years he’d signed up for credit cards, store cards, hire purchase agreements, car finance, personal loans and a mortgage. Not to mention numerous TV streaming services, local gym membership and even a coffee subscription.
For months he’d been doing everything he could to keep up with all the repayments, trying to stay afloat. But despite his best efforts, it had become a struggle. He started to get behind on essential bills like the mortgage and council tax. Demands for payment started coming through the letterbox – a few at first, though before long numerous companies were chasing him
Not surprisingly, this began to take a real toll on Alex’s wellbeing. The constant worry led to sleepless nights and a growing sense of shame. He felt stuck – unsure
which debts were more important, and worried that asking for help would make things worse. He even believed that debt advice would cost him money that he simply didn’t have.
All of this meant Alex felt increasingly isolated. Feeling like he had to deal with everything on his own, he hadn’t told Katie how bad things had got.
After months of struggling alone, Alex reluctantly called the mortgage company to explain what was going on.
He was dreading the conversation, expecting them to be judgemental or put pressure on him – but they were actually really helpful. They listened with empathy and offered practical support. Alex felt heard for the first time in a long time.
The advisor Alex spoke to helped him review his income and outgoings – discovering that he was falling behind on essential bills like his mortgage and council tax because he was prioritising unsecured debts such as his credit cards, streaming services and gym membership.
Alex hadn’t realised that not paying priority debts has more serious consequences. He was shocked when he discovered he could lose the house. By helping him understand the situation, the advisor gave Alex the knowledge he needed to do something about it.
The mortgage company agreed a short-term plan with Alex, and encouraged him to get in touch with a free, independent debt advice service. He was so relieved to get some compassionate, practical support – even more so when they explained it wouldn’t cost him anything.
The debt advice service quickly got in contact with Alex’s other creditors and came to an agreement with them on manageable monthly payments. Another huge weight lifted from his shoulders.
Meanwhile, the mortgage company arranged a longer term plan with Alex, to help him catch up on the payments he missed. After an incredibly difficult time, Alex now feels optimistic about the future.
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CASE STUDIES
A little further reading
If you like to dig deeper, these real-world case studies will give you insight
into financial challenges and how customers navigated them.
A case study about Short Term Forbearance
A case study about Relationship Breakdown Support
A case study about Proactive Support
A case study about Rate Change Savings
A case study about Managing Financial Difficulty
