How PennyPlan helped one client go from crisis to stability

On Christmas Eve, a client reached out to us in a bad mental state. Years of debt, relationship pressures and spending on gambling sites had left him feeling like he was drowning. Things had become so bad that he was experiencing suicidal thoughts and felt like he had nowhere to turn.

At the time, he owed around £40,000 across 11 different creditors. Even though he was working full-time and supporting his family, keeping up with repayments had become impossible. He also managed the situation on his own. Not wanting to cause stress and worry for his partner, who wasn’t aware of the true extent of the debt.

What encouraged him to contact PennyPlan was the wellbeing support we offer alongside our debt solutions. He knew he needed help with more than just his finances.

From the very beginning, our focus was on helping him feel supported and understood.

We took the time to listen, understand his circumstances and find a solution that would genuinely work for him. Through an Individual Voluntary Arrangement (IVA), we were able to:

• Reduce his monthly debt repayments by around £700 a month
• Turn 11 separate payments into 1 affordable monthly payment
• Keep his financial situation private, meaning his partner didn’t need to be involved in the process
• Provide ongoing support through a dedicated account manager who is always available whenever he has questions, concerns, or changes to his circumstances

We also recognised how much his mental health had been affected. Before his IVA had even been approved, we introduced him to our counselling service during the first week of January so he could start getting support straight away.

The client began attending weekly counselling sessions to help him work through the emotional impact of his financial situation and gambling-related spending.

Over the next few months, he started to feel more positive, more in control and better equipped to cope with the challenges he was facing. As his confidence and wellbeing improved, the sessions were gradually reduced from weekly to monthly.

His IVA was successfully approved with affordable monthly payments of £262 over five years.

Over the course of the arrangement, he will repay £15,720, with approximately £25,000 of remaining debt being written off by his creditors once the IVA is successfully completed.

But the biggest change wasn’t financial. When he first contacted us, he felt trapped by his circumstances and unsure how he could carry on. Now, he has a manageable solution in place, ongoing support for his mental health and a clear path forward.

Helping someone deal with their finances is one thing, but often the biggest difference we can make is helping them change their mindset. Financial struggles can be hugely detrimental to mental health and wellbeing.

We’re happy to have been able to help this client take back control of his finances and start enjoying his life again.