Debt Reduction Case Studies
Case Study 1: Saved $2,313
Sam had a debt of $2,613.00 that was in the hands of a debt collection company. This company was calling him constantly and although he did have the money to pay them be genuinely thought the amount owing was not correct, he tried to explain this to the debt collection company but they were not interested, the situation was becoming very stressful for Sam and he was close to paying the collection company just to stop the harassing calls and letters.
Once Sam commissioned our services we got right to work, we found out that the original debt was to a bank that Sam had a credit card through four years prior, the bank had sold the debt to the collection company. The account was subject to penalty interest so the debt had increased significantly from the original amount.
After negotiations with the collection company and pointing out some issues with the original credit contact we were able to reduce Sam’s debt to just $300.00 saving Sam $2,313.00. That’s reduction of over 88%
Case Study 2: Saved $2,487
Author and Suzanna had a personal loan with a credit union. Author was a builder and had injured himself and was unable to work. With Author out of work it was not long until money was a problem and the interest payments on their personal loan fell behind. Author had called the bank to explain his situation however they were not willing to help. With their personal loan in arrears the account was attracting penalty interest and the balance owing was increasing quickly. With the help of Suzanna’s family they were able to come up with some money but not enough to settle the account. They had tried to talk with the bank about accepting a lower amount to clear the debt but they refused.
We dealt with the credit union and negotiated the debt from $6,387.00 to $ 3,900.00 saving Author and Susana $2,487.00. We are happy to say that Author has recovered from his injury and is back at work and they are back in control of their finances.
Case Study 3: Saved $15,000
Mary had a number of credit cards and personal loan debts that she wanted to refinance as she was paying very high interest, these debts combined totalled over $30,000.00. Mary also had a mortgage and paying this along with her other debts was proving difficult. She had fallen behind on some of these payments and although she had caught up some of the loans were still in default due to the penalty interest accumulated due to the late payments.
Mary wanted a new loan to cover all her debts so she would only have to make one monthly payment. When she went to her mortgage broker she learned that because of her income he was only able to approve a loan amount that was $15,000.00 less than what she required to payout the current mortgage and her other debts. She had no way of coming up with an extra $15,000.00 and without this she thought there was nothing she could do.
Mary then contacted us. After negotiation with her creditors we were able to lower the amounts owed which allowed the refinance to take place. We were able to save Mary over $15,000.00 and she now has more disposable income due to her lower monthly outgoings.
Case Study 4: Saved $4,850
Tanya and Matthew have their own business and had a number unsecured business debts totalling over $9,000.00. Although they both worked hard the business was going through a difficult period and these debts had fallen behind. A number of the creditors were in the process of commencing legal action and this was causing Tanya and Matthew a great deal of stress. With this worry they were finding it very hard to concentrate on their business which is what they needed to do to get through this difficult time. At the time they came to us they were facing legal action, a ruined credit rating and a failed business, a position no one wants to find themselves in.
Tanya and Matthew did have some savings however not enough to pay all their creditors.
We negotiated with Tanya and Matthew’s creditors, arranged for the legal action to stop and reduced the payout figures to $4,500.00, a saving of $4,850.00 Most importantly Tanya and Matthew were able to put this behind them and get back to running their business without the stress of unhappy creditors.
Case Study 5: Saved $2,305
Lee had a mobile phone account that he had had for years. Lee had gone overseas for an extended holiday and had forgotten to turn off the data roaming function on his phone. Without realising it his phone was constantly uploading data at international rates. Lee usual monthly phone bill was approximately $50.00 and he had left enough in his account to cover these charges during his absence.
Unfortunately because of the extra data charges Lees account quickly grew to $4,805.00 and the account fell into arrears.
Lee arrived back in Australia well rested but short of money. When he learned of this bill he contacted us for help.
After dealing with the telecommunication company we reduced Lees bill to $2,500.00 saving Lee $2,305.00.