A case study of managing debt
A male employee lives with his partner in a property they rent from the council.They have two children of school age. Their total monthly income is £1,895 and outgoings are £1,550. This leaves £345 a month disposable income. The employee has non priority debts amounting to £24,000.
He called the Employee Assistance Programme service provided by his employer, and was given three options for resolving the debt problem.
Option A – Informal Arrangement
The counsellor went through the debt recovery procedure. If all the creditors agree to freeze interest then it will take about ten years to repay the debt in full. The counsellor outlined how to handle creditors and potential court action.
Option B – Individual Voluntary Agreement (IVA)
The counsellor explained how IVA works. The employee would need to talk to insolvency practitioners. With an IVA he will pay for five years.
Option C – Bankruptcy
An income payment agreement is likely and this will run for three years. The arrangement would not include holidays in the expenses and the child benefit would not be included.
Bankruptcy will not have any adverse effect. If an IVA is viable, then the trustee can fast track for an IVA and cancel the bankruptcy. Bankruptcy may be the most viable option.
In response to the advice, the employee chose to change his bank account and further consider his options. He was also sent a debt pack via e-mail. The case study shows a typical situation and the signposts to resolution.
Emergency services worker struggled following attendance at a traumatic scene
Face-to-face counselling provided to help him cope
James who worked in emergency services was called out to attend a very traumatic scene. Later on in that month he found he was struggling to cope with his duties and unable to forget or process the experience.
One evening, James contacted his EAP provider to talk with a counsellor. During the initial call, the counsellor allowed James to talk through the situation, providing in-the-moment support and a safe space to explore his feelings. The counsellor and James had a lengthy conversation to discuss the support the EAP could provide. With a view to assisting him in coming to terms with what he had witnessed and helping him return to work with the same passion for his duties that he had felt before. James was put in touch with a local counsellor to fit in with his needs and diary.
They met in a face-to-face setting on a weekly basis for six weeks. Together they worked on techniques and tools that James could use to help better cope with his experience.