Amanda and Michael from Middlesbrough were referred to Five Lamps from Middlesbrough Council through the ‘Helping Hands’ scheme.
The scheme is run by all North East Council’s and helps homeowners who are struggling to carry out repairs, essential home improvements or adaptions.
Amanda and Michael first met with Michael Sunderland, Five Lamps’ Loan Officer and it was whilst helping them through the process of their Helping Hands application that he noticed they had an arrangement in place with a Debt Management company. After Michael looked further into the arrangement it came to light that the company were actually taking 40% of the regular monthly payment as a charge for handling their case.
Michael chatted to them both and said that Five Lamps would be able to help them with this problem without charging a fee and he would refer them onto a colleague.
Michael referred the case to John Hird, Five Lamps Senior Loans Officer who arranged a visit and spoke to Amanda and gathered all the information regarding their current financial situation and chatted about the options available to them. When John had studied their finances and outstanding debts he was then able to put a case together and contact the 11 creditors.
As Amanda and Michael could afford the monthly payment they were making, John wrote to all their creditors offering to increase the current monthly payments being made. It was possible to do this because Five Lamps were offering this service free of charge so the money that was previously being taken as a monthly fee could now be put towards actually repaying more of the debt.
The good news is that because more money is being assigned to the debts they will now be repaid over a much quicker period helping Amanda and Michael to move on from this problem.
Amanda said
‘It’s great to know that all of our monthly payment is now being used to clear our debts and we will now pay them off much more quickly, thank you Five Lamps’
John said
‘This case shows the great team work in Five Lamps and we will always try to find a solution for a customer’s problem’
Michael Sunderland has continued to support Amanda and Michael to apply for an affordable loan through the ‘Helping Hand’ scheme so that essential improvements can be made to their home. Work is currently being carried out on their property to install new windows and repair work to their roof. Once work is complete, their home will be more comfortable for them to live in.
Since the start of the Helping Hand scheme, Five Lamps working in partnership with all 12 North East Councils have supported 334 homeowners with affordable loans.