Case Study: Red 2 Black Debt Management

Throughout our years of experience in the debt management sector we�ve met a great number of people struggling with debt problems caused by a wide variety of different reasons. In many cases a sudden change in circumstances has meant that loans or credit that was previously being steadily paid off each month is now unable to be paid.

Unexpected changes in circumstances can be caused by any number of reasons, such as divorce, redundancy, depression, a death in the family, or long-term illness.

Invariably, debt is also caused by lenders changing their terms and interest rates � something they�re entitled to do but which causes great problems to people whose finances are already delicately balanced.

Although many people feel their debt problems are a huge mountain they can�t possibly overcome, time and time again we�ve seen that by putting into practice our helpful debt advice and individually calculated repayment plans, there is a way out. And it is affordable.

Debt Help

Here are the facts and figures of one of our recent cases that may help you to see how Red 2 Black Debt Management Company can help you out of your debt crisis.

Mr & Mrs Welford

The Welfords are a typical example of how a couple can gradually become more and more in debt until it seems as if there�s no possible debt solution.

House-owners with a mortgage, the Welfords have a secured loan on the property and two cars with outstanding financial obligations. Over the years, credit card debt and another loan has added to their financial difficulties, causing overdraft charges and penalties, which have further exacerbated their debt problems.

As a consequence, the Welfords have missed several repayment dates and are late paying other bills. This has, in turn, incurred heavy charges, again adding to their debt which by now has rapidly increased beyond the couple�s means, and is completely out of their control. Feeling utterly overwhelmed they came to us with the following situation:

Unsecurred Debts	Amount	Description	Amount	Description
Credit Card 1 Credit Card 2 Credit Card 3 Credit Card 4 Credit Card 5 Loan 1 Loan 2 Overdraft	�5,800 �6,300 �2,400 �3,800 �1,200 �11,300 �4,300 �1,700	Minimum Monthly Repayment Minimum Monthly Repayment Minimum Monthly Repayment Minimum Monthly Repayment Minimum Monthly Repayment Monthly Repayment Monthly Repayment N/A	�174 �189 �72 �114 �36 �339 �129 N/A
TOTAL DEBT	�36,800	Total Monthly Repayment	�1,053
We assessed their finances and calculated a new, affordable repayment plan:
Joint Monthly Income	�2,550
Monthly Fixed Outgoings	�1,050	Including secured loan, mortgage payment and car finance. Excluding unsecured debts.
Monthly Essential Expenditure	�1,300
Disposable	�200	This payment is the Monthly Management Payment until circumstances change (including our small management charge of �25)		The client pays �200 to us then we distribute the payment to all the creditors.

With the above new repayment plan, the Welfords were able to meet their obligations to their creditors without causing difficulties in their daily lives. This is what makes Red 2 Black a unique debt management company: we give you an affordable monthly repayment scheme allowing you to maintain a perfectly reasonable standard of living. You only have to make one monthly payment to us, and we paid off all your different creditors until the debt is overcome.