Debt Consolidation Case Studies
Debt Consolidation for Sarah of Brisbane
Total Debt:
$98,000
Types of Debt:
Credit Cards, Store Cards and Car loan.
Situation:
Sarah was working for a large organization in Brisbane for several years and earning a very good income. Over the last few years she accumulated 2 gold master cards with credit limits of $30,000 and $15,000 and Sarah’s life style had taken her master cards nearly to the limits but at the time she could easily make the repayments. Sarah bought herself a new car with a loan of $50,000 plus she had 2 store cards with credit limits of $4,000 each.
Sarah’s employer was downsizing due do the current world financial crisis and she lost her job leaving her unemployed for about 8 weeks so she started living off her credit cards and using them to pay the monthly bills. She found herself another job but on a much lower wage. Sarah ended up with all her cards over their limits and unable to keep up with all the high repayments on her reduced income. Sarah fell behind with her car repayments and the car was repossessed leaving her with a $45,000 debt which was payable immediately. Sarah’s credit and store cards had been sent to debt collectors and she was receiving phone calls from them every day asking for payments.
Solution:
Sarah found Debt Control on the internet while searching for a way out of her debt situation. She completed a short form and a consultant from Debt Control was in contact with her the same day.
The Debt Control consultant made a thorough analysis of Sarah’s situation including a cash flow budget to see exactly what she could afford to pay towards her debt of $98,000. Some times its too late for debt consolidation and unfortunately Debt Control were not able to assist Sarah with any form of debt consolidation because of the high level of debt and Sarah’s reduced income. Sarah felt that if she had sought help earlier she would have had more options but in the circumstances decided that bankruptcy was the best option for her.
Debt Consolidation for Brad of Sydney
Total Debt:
$118,000
Types of Debt:
Credit cards, store cards, phone bills, car loans and mortgage.
Brad was single with a mortgage of $250,000 and was working full time on a good income. He was in a relationship for about two and a half years and his partner had a bad credit history so all credit cards, store cards, mobile phones and loans went into his name. His partner had taken out a debt consolidation loan a couple of years earlier and defaulted when she was unemployed for a while.
Brad took out two car loans for a total of $40,000, a store card with a limit of $3,000, three credit cards with limits of $10,000, $5,000 and $7,000. Brad’s relationship went bad and his partner moved out leaving him with all the debt to pay on one wage. His ex partner agreed to pay for her part of the loan for the car she was still driving but after a short while she stopped making the payments on that loan and they repossessed the car leaving him with a $20,000 shortfall to pay immediately. Brad fell further behind with payments and the debts were all sent to collection agents. With all the credit card and loan payments to meet on one income Brad started to fall behind with his mortgage payments. After a long struggle the house ended up being sold by the bank and Brad was left with a $73,000 bill for the shortfall as the house was sold for less than was owed on the mortgage.
Solution:
Unfortunately debt consolidation is not an option when debt levels get completely out of control so Brad had been looking at different options. He did some research on how he could get himself out of his financial mess and in the end he felt bankruptcy was the only road for him to take. Brad found bankruptcy a very difficult and embarrassing subject to even talk about and had no idea where to start, so he did a search on the internet and found Debt Control. One of Debt Control’s friendly consultants thoroughly reviewed his situation and helped him through a very difficult and confusing time.
Debt Consolidation for Alana of Sydney
Total Debt:
$87,000
Types of Debt:
Store cards, credit cards, telephone bill.
Alana was driving to work when she was involved in an accident with two other cars where she was at fault and her vehicle was not insured. Her car was written off but she still owed the bank $18,000 which was due immediately. The insurers of the other two cars involved in the accident made claims against her for $30,000 and $27,000 and she now had debt totaling $75,000 which all happened in the blink of an eye. Alana lived at home with her parents and paid only $50 a week board but she had $75,000 in debts from the car accident, a store card at the limit of $4,000 and a credit card which was also up to its limit of $6,000 plus a mobile phone contract that went bad on which she had payout figure of $2,000. Alana had approached her bank for a debt consolidation loan before the car accident but was unsuccessful, so she made payment arrangements for the two credit cards but the phone company’s collection agents would not accept a payment arrangement.
Now Alana had another $75,000 of debt from the car accident and she started to look at declaring bankruptcy as she felt it was impossible to pay off all that debt on her income.
Solution:
Unfortunately debt consolidation was not an option for Alana with the level of debt she had and her modest income. Alana contacted Debt Control for sources of information on bankruptcy where she was directed to the ITSA website. When Alana decided that Bankruptcy was the best course of action for her the Debt Control consultant assisted her with all the paperwork as she was extremely stressed and embarrassed about the whole situation.
Debt Consolidation for Roger of Sydney
Total Debt:
$29,000
Types of Debt:
Credit cards, Store cards and phone bills.
Roger (not his real name) approached Debt Control for debt consolidation help after being refused a debt consolidation loan by his bank. He had fallen behind with re-payments after a period of unemployment and had debts from credit cards and a phone bill with payment arrangements of $336 per week to various collection agencies. In addition to that Roger had a car and computer loan with repayments of $456 per week which was a lot more than he could afford. Roger was getting deeper in debt every week and needed to consolidate his unsecured debts into one affordable re-payment to help get his financial life back on track.
Solution:
One of Debt Control’s friendly, highly trained debt consolidation specialists discussed Roger’s situation with him and made a thorough analysis of his debt situation.
Debt Control was able to assist Roger to consolidate his unsecured debts into one affordable re-payment of $135 per week a reduction of $201 per week on what he was paying.
Debt Consolidation for Jill and Henry of Melbourne
Total Debt:
$43,000
Types of Debt:
Credit Cards and Store Cards.
Situation:
Jill and Henry (not their real names) had a mortgage and car loan with repayments of $643 per week and had applied to their bank for a debt consolidation loan but were unsuccessful.
Henry had been out of work 3 months and their credit card debts were in the hands of collection agencies as they had fallen behind with repayments. Jill and Henry approached Debt Control for debt consolidation help as they had multiple credit cards with debt of over $43,000 and repayments of $554 per week to various collection agencies and they were falling further behind every month and the stress of it all was affecting their marriage.
Solution:
Debt Control’s friendly, highly trained debt consolidation specialist discussed Jill and Henry’s situation with them making a thorough analysis of his debt situation and was able to help them consolidate their unsecured debts into 1 easy payment of $280 per week which was a reduction of $274 per week on what they were paying.
Debt Consolidation for Ken of Brisbane
Total Debt:
$16,700
Types of Debt:
Three Credit cards.
Situation:
Ken (not his real name) applied to his bank for a debt consolidation loan and was refused. Ken worked as a subcontractor and when it rained he could not work and did not get paid. There were many weeks when he only received 2 and 3 days pay, as a result he was falling further behind with repayments every time that happened. Ken had 3 credit cards for a total debt of $16,700 with 3 different collection agencies and payments of $198 per week.
Ken needed help consolidating his credit card debts into one affordable weekly repayment.
Solution:
Debt Control’s highly trained debt consolidation specialist discussed his situation with him and made a thorough analysis of his debt situation. Debt Control was able to assist Ken to consolidate his 3 credit card debts into one affordable repayment of $72 per week which was $126 a week less than he was paying the collection agencies.
Debt Consolidation for Ian and Karen of Perth
Total Debt:
$32,650
Types of Debt:
Personal loans, Credit cards, Store cards.
Situation:
Ian and Karen (not their real names) had applied to their Lender for a debt consolidation loan but were refused. They had 3 personal loans, 4 credit cards and 4 store cards with a total debt of $32,650 when Karen lost her job and with only one income to live on they started to fall behind with repayments and their credit cards and store cards which were cancelled and placed in the hands of collection agencies. Ian and Karen had made payment arrangements with the various collection agents for a total of $447 per week and they were falling further behind every month as they could not afford this repayment amount.
They had a court judgment against them for one of the store cards and could no longer cope with the stress and sleepless nights so they contacted Debt Control for debt consolidation help.
Solution:
One of Debt Control’s friendly debt consolidation specialists discussed their situation with them and outlined their options. Debt Control was able to help Ian and Karen consolidate all their debts into 1 affordable weekly payment of $173 a saving of $274 per week.
Debt Consolidation Alison of Adelaide
Total Debt:
$22,400
Types of Debt:
Personal loans, credit cards and store card.
Situation:
Alison (not her real name) approached her bank for a debt consolidation loan without any success. Alison had been in a relationship about 4 years and all the personal loans and credit cards were in Alison’s name because her partner had a bad credit rating and could not get any finance. After 4 years Alison’s partner walked out leaving her with all the debts and only one wage to pay all the loans. She needed to consolidate these debts into one affordable repayment so she could get herself out of this situation.
Alison had 2 personal loans totaling $8,300, 2 visa cards totaling $11,300 both over their credit limits and a store card on which she owed $2,800 and all of these debts were in the hands of collection agencies with payment arrangements of $276 per week which Alison could not possibly afford.
Solution:
It became clear that Alison needed help consolidating her debts and approached Debt Control for assistance. Debt Control was able to consolidate all her debts into one weekly repayment of $155 which was $121 per week less than the payment arrangements she had made with her creditors.
Debt Consolidation for Linda of Canberra
Total Debt:
$21,000
Types of Debt:
Personal loans, car loan, credit cards.
Situation:
Linda (not her real name) approached Debt Control for debt consolidation help as she had been refused a debt consolidation loan by her own bank. Linda was employed as a full time casual but her hours were reduced dramatically and she was falling further behind with her repayments every month and all her credit cards were now way over their credit limits.
Linda had a car loan and a personal loan which were both up to date with payments as they were directly debited out of her account but after the direct debits came out she had no money left to pay her 4 credit cards which were all way over their credit limits. Linda had not made any repayments on her credit cards for 6 months and they had all been sent to collection agencies.
Solution:
It became clear to Linda that she was in trouble and needed help consolidating her debts in a manageable repayment. Debt Control’s experienced, friendly staff were able to help her consolidate her credit card debts and personal loan into one affordable weekly repayment of $100.
Debt Consolidation for Abbey of Hobart
Total Debt:
$16,200
Types of Debt:
Credit cards, store cards, cash loans and utilities.
Situation:
Abbey (not her real name) was self employed and her business was going through a quite time and she was falling further behind each week with her repayments. Abbey felt that if she could consolidate her debts into one affordable weekly repayment she could manage her debt situation ok. So, she applied to her bank for a debt consolidation loan but was unsuccessful.
Solution:
Abbey approached Debt Control for assistance to consolidate her debts into one affordable repayment and one of Debt Control’s highly trained debt consolidation specialists discussed her situation with her and outlined her debt consolidation options. Abbey’s debts were then consolidated into one affordable weekly repayment of $78.
Debt Consolidation Michael from the Gold Coast
Total Debt:
$10,900
Types of Debt:
Credit cards, cash loan and store card.
Situation:
Michael (not his real name) was renting with friends and the lease was in his name. He had a falling out with his friends who moved out leaving him to pay the rent by himself for the remaining 5 months of the lease. Because Michael had to pay the full rent on his own he was falling behind with his credit card repayments.
Michael felt that if he could consolidate his debts into one affordable weekly repayment he could manage his debt situation so he applied to his bank for a debt consolidation loan but without success.
Solution:
Michael contacted Debt Control for help as he was falling further behind every month and was becoming very stressed about his financial situation. One of Debt Control’s friendly staff had a close look at Michael’s financial situation and was able to help him consolidate his credit card and other debts into one affordable weekly payment of $70.
Debt Consolidation for Gary of Darwin
Total Debt:
$32,400
Types of debt:
Credit cards, store card, utilities bills, car repossession.
Situation:
Gary (not his real name) and his wife had a mortgage of $138,000 and two incomes coming in. The marriage broke down and Gary’s wife left him with the mortgage and other debts to pay on one income. Gary approached his lender for a debt consolidation loan but they said he did not have enough income to service a loan. Gary was 3 months behind in payments on the mortgage and his car had been reposed with $17,000 still left to pay after the car had been sold by the Finance Company. Gary had credit cards over the limits and was 3 months behind with repayments and was being contacted by debt collection agencies.
Solution:
Gary called Debt Control for help to consolidate his debts into one affordable weekly repayment so he could get back on track financially. One of Debt Controls highly trained debt consolidation specialists had a close look at Gary’s financial situation and was able to help him consolidate his unsecured debts into one affordable repayment of $156 per week.
Debt Consolidation for Sam of Tasmania
Total Debt:
$18,700
Types of Debt:
Credit cards and Store cards.
Situation:
Sam (not his real name) was living at home when a job opportunity came up in NSW. Sam moved interstate and rented a place but the job did not work out and he still had a lease and rent to pay. Sam had over committed himself to credit but managed to get by until he had all the extra expenses of moving interstate and then the job not working out. He felt that if he could consolidate his debts into one affordable weekly repayment he could manage his debt situation, so he applied to his bank for a debt consolidation loan but was unsuccessful.
Solution:
Sam’s credit cards had been cancelled by the banks and sent to collection agencies which were demanding immediate full payment. He had a court action pending against him for two of his debts so he contacted Debt Control for help.
One of Debt Control’s highly trained professionals looked at Sam’s debt situation and was able to consolidate his debts into a weekly repayment of $120 so he could get his life back on track.
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