Aisha's Unexpected Turnaround: Debt Relief with Money A+E

I work for GSTC, primarily in the community, and I’m often on the go. One day, as I was heading out, a member of Money A+E approached me and asked if I would like to reduce my energy costs. I only had 30 minutes for lunch but thought I could use some advice.

I’m facing significant financial difficulties—my bank account is frequently overdrawn, leading to substantial fees due to unexpected expenses. The constant struggle to manage unforeseen costs has affected my overall quality of life.

With my household expenses exceeding my income by over £300 per month, Money A+E advised me to lower my expenses and provided an updated financial statement with reduced figures. My new statement showed a small surplus of £20 if I could commit to cutting my spending. I had four non-priority debts and rent arrears, which were considered a priority.

Recommendations:

1. Lowering Expenses: I was advised to reduce my spending on hairdressing, food, Sky TV, and mobile services to create a surplus in my budget. This would help cover my debts and improve my financial situation.

2. Prioritizing Bills: Money A+E emphasized the importance of paying my rent, council tax, and fuel bills before any credit debts. They presented me with four debt-solving options: a debt management plan, a token offer plan, a debt relief order (DRO), and bankruptcy.

   
   

Financial Gains Possible:

1. Surplus Budget: By following Money A+E's advice and reducing my expenses, I can apply for a DRO and be debt-free within a year.

2. Grant from British Gas: Money A+E applied for a one-off £150 grant from British Gas to be credited to my electricity account. This grant was extremely helpful as it did not require repayment, meaning I didn’t have to worry about topping up my meter for a few months.

3. Potential Savings on Interest and Late Fees: By addressing my debts and implementing a suitable debt solution, I could potentially save money on interest charges and late fees. Speaking to my creditors resulted in them halting interest charges, which has made a huge difference. Once I’ve paid off the DRO, I plan to continue saving some of the money for a rainy day.

   
   

One thing this has taught me is the importance of talking about money. With just one or two calls, I felt so much lighter.

Name: Aisha* alias given to preserve anonymity

Location: London

Occupation: GSTC employee

Support included: Prioritizing bills, Welfare Benefit, Budgeting, Saving and setting money goals