Debt Management Solutions – Case Studies
Debt Management Solutions – Case study 1
Barry and Kim were both working full time while raising three teenage children. They were balancing their finances until Barry’s employer closed down and Barry was out of work for 3 months. During that time all of the household accounts and the mortgage fell behind. In addition to the normal household bills Barry and Kim had 9 additional credit facilities totalling $90,000.00.
After contacting Just Budget, we helped to organise a variation to the mortgage contract and clear the arrears, in addition we contacted all of the remaining creditors and advised them of the circumstances.
The previous monthly payments for Barry and Kim’s credit accounts were in excess of $2,500.00 per month. We successfully renegotiated the terms of these contracts and reduced those payments to $900.00 per month.
Not only did we assist in saving Barry and Kim’s home we also reduced their overall monthly outgoings by over $1,500.00 per month.
Debt Management Solutions – Case study 2
Rick and Sam were guarantors for their sons car loan but when he stopped paying for it they became liable. They could not afford this new debt along with their mortgage and other credit cards. After all of the debts were sold to collections companies and Rick and Sam had been told they were going to lose their house they contacted us.
Because they were both on Government pensions they could only afford $250 per month but the collections companies wanted lump sum payments and monthly payments in the thousands.
After contacting the creditors and explaining the situation we were able to freeze the interest and fix the payments at $25 per month.
Debt Management Solutions – Case study 3
Pam was a single working mother caring for her disabled son. She applied to her bank for an increase on the mortgage to renovate her home to be accessible by wheel chair, after they turned her down Pam took out 10 credit cards totalling $95,000.00 and renovated her home so her son could go outside while she was at work. After a few months Pam could not keep up with the payments and started to fall behind. Before contacting us Pam was receiving upwards of 50 calls a week sometimes she was receiving nasty messages. Other times she would receive 5 calls in a row from a blocked number with no message at all. This was most likely a debt collection company.
When Pam contacted us she was at breaking point, her minimum monthly payments were nearly $3000.00 and she could no longer take the threats or pressure. We contacted all of her creditors and advised them of her position and renegotiated her payments to a more manageable $900.00 per month with no ongoing interest.
Debt Management Solutions – Case study 4
Daniel had recently separated from his wife and refinanced his home to pay out the family court orders. After interest rates continued to rise between 2005 and 2009 Daniel could no longer afford his Credit Card and Car payments.
Daniel contacted us and we set a schedule for payments that Daniel could manage. After 3 consecutive months of making those payments his Car finance company agreed to reducing the remaining payments on his contract to that amount.
We then contacted his credit card companies and advised them of Daniel’s financial hardship and they agreed to reduced payments with no interest until the contracts were paid in full.