David and Claire Struggle to Pay Off Credit Card Debt and Payday Loan
In this blog we take a look at David and Claire, a couple who were struggling to repay both credit card debt and a payday loan.
David and Claire are a couple in their early forties who were facing a number of financially based problems due to Claire losing her job a few months back, which in turn reduced a large portion of their monthly income.
Both of them had full time jobs with Claire being the main wage earner in their household, but she was sadly made redundant due to a company buy-out of the firm that she was working for. She searched frantically for a new role but nothing was available, certainly nothing that paid the same sort of wage she was taking home from her original position. Claire responsibly took a lower paying job to tide them over until she found a more appropriate position.
The couple had the usual levels of outgoings with the standard utilities bill and household costs such as groceries but they were also carrying a couple of outgoings that were crippling them on a regular basis. One was to a credit card and the other was to a payday loan. David and Claire were just about paying off the interest each month but no more. As far as they were concerned this looked like it would go on forever and they would never be able to rectify the situation.
The payday loan was taken out to help cover costs of their bills during the period of Claire’s unemployment. During that time the credit card which was being paid off slowly had also stopped being paid off and was just adding to the financial burden.
In their despair David and Claire were on the brink of looking in to debt management and declaring themselves as bankrupt in order to break the cycle.
A few days later David found himself talking to his friend Mark about the situation they had found themselves in. Mark told David that he had been through a similar thing about two years prior and brought up the idea of an unsecured personal loan with a far more manageable repayment amount. David, however, didn’t think that he and Claire would be eligible. When David got home he mentioned it to Claire who, like David, thought they wouldn’t be eligible but Claire immediately got onto the computer and started looking into alternative loan options online.
They came across George Banco during their web searches and put in an online application. George Banco immediately came back with a positive result, but they would need to find a guarantor to support the application if they were to be successful.
The affordability checks showed that without the credit card and pay day loan debt that they would comfortably be able to afford the repayments. So provided they used the loan to pay off those outstanding debts they would be in a far better position than they were originally.
David spoke to his father who was fully aware of the situation the couple were in. He then checked with his mum, who agreed straight away to become their guarantor.
They went ahead with the remainder of the application and 48 hours later found out the good news that they had been accepted and would have the funds the following day.
David and Claire now have a manageable level of monthly outgoings and are paying off the guarantor loan as agreed in the repayment schedule.
The guarantor loan repayments are also now showing in their credit history, which in turn started to help improve their credit score.
If you find yourself in a position of having unmanageable outgoings due to credit card or payday loan debts then get in touch with George Banco to see if they can help you in the same way as David and Claire.
Please Note – Certain details have been changed for data protection reasons.