Example C

It is highly probable that if you are in example C you will have a number of accounts which have defaulted and in some cases you may have a number of accounts which are now being dealt with by Debt recovery companies or solicitors.

In extreme cases you may even have now defaulted on secured debt such as your mortgage of vehicle finance, in which case you may have been advised that repossession of either or both could be about to take place. If this is the case or not it is important that from this moment you take comfort in the fact that it is now you who has decided to take action and not just your creditors, from the very moment you started to read this book you took control of your situation, and from now on each step you take will be a positive one.

We cannot guarantee that we can stop you losing your home or car, but we can do all we can to lessen that possibility and even if the worse happens or indeed as already happened we will show you how to start again with your finances    

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The only way we can ensure that you can cover your secured debt is to re visit your income and expenditure form, using the form you have already completed I want you to now complete a second form but this time I want you to exclude any repayments on unsecured debt, such as credit cards, loans and store cards etc.

Do not mistake this absence as a signal for you to stop repayment as we will be re visiting these debts with a plan of repayment very shortly; but from now on we will be making our priority our first concern.      

Once you have completed the second form you should hopefully show a disposable income, it does not matter how small that figure is as we can still work with it . Move to Example D for the next stage.

next page: Example D

Creating disposable income

Managing your creditors