Mr and Mrs Jones have 3 children under 10, and a total debt of £32,000 on loans and credit cards. Their car is on hire purchase, which is essential for Mr Jones to travel to work.

They built up debt over several years of over-spending, thinking Mr Jones’ salary would eventually rise, enabling them to catch up. This didn’t happen and when his overtime ceased, they were not able met their creditor’s demands.

They currently pay out £600 per month leaving them with a ever growing overdraft. Their outgoings leave them with no money at the end of each month.

They agreed to repayments of £250 per month for 2 years and £350 in years 3, 4 & 5 as the car hire purchase ends in 2 years. They get to keep the car and have a new Bank account and no overdraft. In total they will pay back £18,600 over 60 months in the IVA’s.

Mr Reeves is single, rents from a private landlord, and has no dependants. He earns about £23,000 a year. At 27 years of age, he has already amassed debts of around £52,000 over 8 years.

Mr Reeves admits his debts are solely the result of his own irresponsibility and indulgences. Everywhere he was offered credit, he took it, mostly making minimum payments. He was now finding these payments difficult.

Mr Reeves agreed to down grade his car to raise £11,000 which also halved his insurance premiums, leaving £41,000 of debt. His creditors accepted an offer of £290 for 60 months, paying back in total £17,400.

Having rented with her husband and child whilst married, Ms X already had large, but affordable credit repayments before her divorce. As the household income dropped to a single wage plus benefits and maintenance payments, she could not longer afford what her creditors were asking for.

Failing to take the appropite action, Mr X tried to borrow he way out of debt, until her sole and joint debts with her ex husband totaled £39,000.

She entered into a linked IVA with her ex-husband and agreed to payback £220 per month for 60 months totaling £13,200 over 5 years. Her situation will be reviewed in 12 months time when Ms X hopes to return to full time work as her child reaches school age.