Our Senior consultant, Sarah Longsdale, went to the Credit Today Awards 2013 as one of the Debt Counsellor of the Year finalists.

Winning the Debt Advisor of the Year in 2011 with the industry Trade Body, Debt Resolution Forum, and then again in 2012 for Investor in the Community, we were over the moon to have our long standing advisor, Sarah Longsdale be named as a Finalist for the Credit Today Awards as Debt Counsellor of the Year 2013.

ClearDebt advisor Sarah Longsdale – Finalist for Debt Counsellor of the Year 2013 with Credit Today

The benchmark for advice, Sarah routinely makes the concerns of her clients paramount; her intrinsic compassion for the people she advises immediately puts them at ease and she offers not just the most appropriate debt solution but support and reassurance when our clients most need it.  Her trustworthy and professional manner matched with her empathy for a client’s situation professionally conveys the genuine ethics of our company.

The bedrock of a competent advisor is knowledge; through a culmination of years of refinement and self-development Sarah’s knowledge of the industry is by far one of the most expansive. She has been in the industry for 12 years now and was one of the first industry professionals to take and pass her CertDR examination. Her hard work and perseverance delivered an overall average of 84%. Her appetite to learn and rise to the challenge paid off and we are truly proud and honoured to have her as a member of our team.

Our clients say of Sarah,

Sarah was very friendly and efficient with dealing with any problems I had.

Sarah helped me to prioritise my debts and sort out the mess I was left in after the collapse of Apex DMC. Everything looked very black and I was beginning to despair of ever being debt free. Sarah rang me back when she said she would and was calm, reassuring and concise in the instructions she gave me about sending in paperwork and sorting out my debts. Sarah deserves recognition for the part she played in helping me overcome my worst ever financial nightmare.

View the story “Credit Today Awards 2013″ on Storify

Each month the whole ClearDebt team get together to award our mini heroes of the month. All staff get the chance to nominate someone they think has gone above and beyond their job and deserves to be rewarded for all their hard work.

April’s ClearDebt Mini Heroes

We’re pleased to announce this month’s winners are: Nathan Steele, Bella McVennon and Lisa Hubbard.

Nathan was nominated for using his own personal time to help with crucial restructuring that without him would have been a very difficult task.

Lisa for her approach to answering community questions, conducting research and providing thorough answers.

Bella for helping new starters without a prompt while maintaining her own work.

Congratulations to every one who received nominations this month!

Consumer group Which? has found the new proposals from the energy regulator Ofgem will leave 3.4 million households paying more than they should because the range of tariffs on offer are not clear.

Ofgem has introduced its new Tariff Comparison Rate, but this will only tell customers the representative price for a medium user of both gas and electricity.

According to Which?, only a quarter of UK households actually use this level of energy, which leaves the majority of people making price comparisons based on the wrong numbers.

Many people are in debt to their energy provider and in some cases this has happened because the consumer has been paying more than they need to.

It is important for those currently struggling with their finances to assess their energy bills as there could be some large savings on offer.

Which energy tariff is right for me?

The best way to find the right tariff for you is to use your actual readings instead of estimated price comparisons. How many units do you use in a month? Does this vary?

Find the average usage for your household and get quotes based on this from a number of providers. Make sure you know the facts – is it a fixed or variable rate? Is there an early exit fee? Direct Debit discount?

Do your research – if you think you are paying too much for your energy – you probably are.

Compare the comparison sites, find out what is most suitable for your lifestyle, speak to advisors, regularly read your meter and be savvy about your usage.

British Gas are the first provider to include information about how much you could save by switching to another tariff on their bills and it is likely that others will follow suit – so if you haven’t got the internet to check tariffs you can still find out how much you could be saving.

Finally, ask around your friends and family about how satisfied they are with their provider.  Review sites for energy providers are one-sided at best. All have an average of around 1-2 out of 10, which just goes to show how dissatisfied we all are with our providers.

Share your experiences and help others choose the right provider for them.

Please comment below or join the discussion on Facebook.

As we finally say goodbye to the frost and snow, signs of spring are on their way and for many of us – particularly with two May Bank Holidays ahead – this means spending we probably didn’t plan for. Family days out feel like a much needed break when the sun comes out and we all have a few days off work.

But what if it rains or the car breaks down?

Respected comparison site, Moneysupermarket has recorded as much as a 58% rise in demand for payday loans in the run up to the May Bank Holidays – indicating that for many budgeting Brits, their cash does not always stretch to those pesky little extras that all mount up. It could be as simple as bumping into old friends and sharing the bill for an unplanned meal out, an impromptu day trip out because the sun is shining, or a treat for the kids because the big discounts are on.

How do we manage the extra costs then?

A more traditional buffer for days out and personal emergencies are savings accounts – though it’s easy to understand the desperate popularity of payday loans, when we’re rabbits in the headlights and the ads come on. So, with the centuries old celebration of May Day coming up, we thought we’d go old school, with a prize draw and quiz.

How much do we really know about credit unions, for instance, or rainy day funds and lending circles? Over the next couple of weeks, we’ll be putting questions like this to our community of ClearDebt clients and people who’ve come to us for advice in the past. Watch this space for their answers and budgeting tips before the next bank holiday weekend.

Last week, IVA clients, Paul and Carolyn, invited us into their home to talk candidly on camera about their experiences of living within a debt solution. They openly shared the circumstances that had led to their financial difficulties and consequently their IVA, as well as describing how their daily lives had adjusted now that they are redressing their debts.

Below are a series of video diaries reflecting on the different stages of living in an IVA.

How we got into Debt

The turning point – when we realised we needed help

What we would say to others in debt

Below is the transcript of the video diary with Paul and Carolyn:

Hi, would you like to introduce yourselves?

P: Paul Cox, 38 years old and a Warehouse Manager
C: Carolyn Cox, 36 nearly and Cabin Crew. We’ve been together 16 years and have had joint money for about 11 years. When we decided to put joint money together we both had our own loans, credit cards and debts.
P: We consolidated it all. At the time we both had a good wage, no responsibilities bar the mortgage. We had spare money. We never had to save for anything. If anyone asked us if we wanted to go out – it was always a ‘yes’.
C: We always had spare money, and what we didn’t have we put on credit cards. So if we didn’t have it, we just put it on the credit cards. We didn’t really look at prices. We probably didn’t have any value of money really. And then Paul got made redundant.
P: The company went into liquidation three or four years ago. So my salary reduced dramatically.
C: By about half. And he had a company car as well.
P: So obviously the markets out there weren’t very stable and there weren’t a lot of jobs so…

What were you doing before?

P: Again, Warehouse Manager for a computer broker –HP and IBM products. I’d been there from the start up of the company so it was myself and the two directors and it progressed. We had offices in Holland, Germany, South Africa but the one location for the warehouse was ours so we were distributing all the parts. So yeah, that was going for 10 years.
C: We had a nice life for 10 years really. We were both receiving bonuses. We just used to spend really. No savings. A nice life really. And if we decided to pay the credit cards off we’d take a loan out, pay it off, decide not to use the credit card again and then it would creep up; we’d have a holiday and spend more than we thought and that’s pretty much where it came from really. We took credit cards out and then took a loan out to pay them off, but we’d never not paid the money if that makes sense.

We’ve never had letters coming through because we could always afford to pay it back.

P: Yeah, we were always paying the minimum basically but then it obviously carried on increasing the following month.

So it just kept building up and up?

C: Yeah, we basically lived on half the salary but as we had done before. We didn’t adapt our lifestyle at all. And then I fell pregnant which was the turning point.
P: We probably buried our heads in the sand a little bit especially for the first two years/year a half.

So was it a year and half between being made redundant and becoming pregnant?

P & C: Yeah, pretty much.
P: Maybe nearly two. And then I started the new job which I’m in now which is just around the corner and then that’s when Carolyn fell pregnant.
C: And as Cabin Crew as well, as soon as you’re pregnant you come off from flying, so you go back down to having a basic wage again, so it’s not just while you’re on maternity afterwards that your wage drops, it’s the nine months running up before. Because you’re obviously not flying – so you’re not earning, your flying money.
So we had the period of the nine months of me being pregnant and then the nine months of me being off work. Which again… we just seemed to get deeper and deeper. And then when I went back to work we decided the only way we would be able to pay the amount back that we’d been paying before without not paying, would be if I went back full time and do long haul all the time which is not what I wanted to do really with a new born baby. And that’s where it all started.

So was that the point that you realised you needed help?

C: Yeah, it had been coming for about five months but we weren’t sure where to start really.
P: As I said, we’d always covered the costs of paying but we weren’t clearing anything really. And as you say, it was still gradually building up.

So you were treading water really?

C: Basically, yeah. We’ve never not paid but it’s never been going down.
P: So it was recommended by a friend and it went from there.

And as for many couples going through this situation, did it affect each of you differently in terms of your emotions towards it?

P: Yeah, because it was my job with all the money I was earning that had basically halved – I felt a bit like I wasn’t taking care of my family…yeah….you feel a bit dejected.
C: I think the most worrying thing for me was the sudden, the fear all of a sudden that if we couldn’t pay things back we could lose the house. And then all of a sudden I’d got this little person now who needed someone to look after her and this is our home and that’s the most important thing really. So whilst Paul felt that, I felt responsibility for Lucia that obviously we needed to grow up basically at 36 years of age and take a bit of control over our finances and our life really.

I think this is something a lot of people go through

C: Yeah, usually 10 years before

So you reached that point where you decided to seek help, what do you think up until that point was the most difficult part in terms of dealing with managing money. Had it been something you were very aware of with budgeting or do you not think you’d reached that point yet?

C: We didn’t really budget for anything before. If we went food shopping we’d go to Tesco and spend £130 and if we didn’t have it, it would go on the credit card. Neither of us are worriers about money.
P: Our attitude was that if we didn’t have it we’d find it one way or another.
C: And we had a nice social life and so that doesn’t help when you’re out all the time with friends and holidays and …yeah.

So once you got in touch with us at ClearDebt how did you feel about that?

C: Nervous that we might not get it (the IVA). I think really that was the first thing. When we decided to get in touch with you, that was when we decided we really wanted it then.
P: Once we’d been approved and told we’d got it, it was a feeling of relief and we could see the light at the end of the tunnel. You’re not always chasing your tail. There’s a resolution. Yeah, it’s going to be five years but if you look, it’s taken us ten years to gradually build up the debt.

I think that we were just relieved really. I felt that…I wasn’t going to be in debt anymore.

C: Because even though you’re still paying it back it’s not like you owe seven different companies and you’ve not got bills coming through your door that you are aware that you owe money. This to me is like paying the mortgage. It’s just a set amount which goes out every month. It’s a bill – it’s a certain amount that goes out every month and it’s just part of your accounts for the month. And I don’t actually feel like I owe money out. If that makes sense. So it’s just a complete weight off. Massive, massive relief.

I think for a lot of people who go down this route, for some the fear is actually i phoning and having to go through the details with the advisor; and then some of it is about the adjustment – in terms of “now you have to budget” – so how have you adapted to that?

C: We found it difficult as a couple for that.
P: The main one was rather than just going to Tesco or Morrison’s to do everything, now we’ll go for certain bits to Aldi, then Morrison’s.
C: I’ve got a shopping list now of what we can have for the week.
P: We’ll go to Costco if it’s obviously nappies. The washing’s gone up so we’ll buy that in bulk. You know, we’ll try and save a bit of money there. Just learning – we’ve had to save. Whenever people ask us out we can’t always say ‘yes’ – if we’ve got the money then yes we will go out.
C: Or we’ll just go for a drink rather than a meal.
P: We just reign it in that way round …that’s probably the hardest thing – trying to say no to your friends.

I suppose it’s the fact you’ve got a plan for stuff that’s coming up.

C: Yeah, we only have a certain amount each month so if that’s gone on Paul going out with his mates then that doesn’t always mean that we’ve got money to go out as a couple. So we have to…
P: compromise really.
C: And then we both like clothes. So that’s been quite hard as well – not being able to just go out and go shopping and buy what you want. That’s a big adjustment. But we haven’t struggled …it’s just been the luxuries we’ve had to cut back on rather than necessities.
P: It’s given us a focus really to try to work to.
C: Makes me feel quite proud really that we’ve….well we have…we’ve started taking responsibility for everything and well…perhaps we should have done that 10 years ago.
P: Yep – we should have done it a bit sooner.
C: Yeh, we should have done it a few years earlier.

And have people been understanding and supportive? Do people know?

P: Most people do.
C: I tell people
P: Yeh – it’s become the opening line.

I’m just happy that we’ve done it and I don’t think it’s anything to be ashamed of

C: I think all the time at work, there are a lot of people who are in the same position as us but don’t want to talk about it or the don’t want to live to a budget. And you know I can understand that.

Do you find once you say to someone that you’re in this situation that you’re in an IVA and repaying the debt, that they suddenly open up and tell you..”well actually”…

C: Yeh probably but I think a lot of people say “well what’s that?” That’s most people’s response.

So you don’t think many people know what an IVA is?

C: Not really. No. I’ve only known two people who do. We’ve been in the IVA 18 months and there’s only a couple of people I’ve spoken to who have either had one, or know someone who’s had one.
P: So Carolyn telling her friends and has encouraged them to go for help.

I think that’s the pattern isn’t it? Somebody who’s got the strength to understand that it’s a good thing that you’re addressing it and then to tell others.

C: I think the problem is that people think it’s too good to be true. We were only okay with it because we knew somebody who’d gone through it and said it’s a great idea; it’s not too good to be true. It will change everything. And it’ll really help you. I think that’s why we did it. Because we trusted her, that we thought it was okay.
Whereas I think when you go into it not knowing anybody or not knowing what it is – when it’s something you’ve just read in the paper, that it’s just …a bit different.
P: You might worry if you’re going to get pushed into something …or that there’s going to be a catch or something or they’re going to sting you on the backside but it’s not like that. It’s been a breath of fresh air.

And what do you think about the issues for people who are in debt and don’t know where to go – whether to go for free advice, or to a fee-charging debt solution company like ours? How did you make the decision to choose a fee-charging company such as ClearDebt? And how do you feel about the decision that you made?

We’re happy with the decision we made. We felt comfortable straight away. That’s, for me, the main point – being comfortable. The service we got and still receive has been very good. Very responsive.

C: Yep, as soon as we email, you emailed us straight back; you need somebody at the other end – more than a phone service where you’re going to put through to six different people first, so yeah, that one point of contact is very important.

And if you were to say anything to people who watch this video in the future and who haven’t yet decided;,either haven’t yet decided they are in enough debt that they need help or haven’t decided that they’re ready to ask for help – what would you share or pass on to them?

P: Do it sooner. If you can’t resolve it by increasing your income then it’s only going to spiral and get worse. ..so resolve it sooner.
C: I think I would just say that basically, it’s only for five years and five years out of your life is not a long time. We’ve done it for 18 months now and basically it lifts a lot of problems off you. As a couple, if you’re struggling for money and paying things back, it makes things easier. Yeah…I think we should have done it a few years earlier…if we had, we’d be four and half years down the line now instead of one and half. But it’s been great. It’s gone very quick and it’s nice to think in three and a half years we’ll be debt free…which is what it’s all about it, isn’t it.

To find out more about IVA’s and to use our IVA Estimator offering guidance on how much you can reduce your debt by, visit our website.

Got a question? Ask us on the ClearDebt online community: