Rob works for a mining company on FIFO basis, located in far north WA. Unfortunately, due to an industry downturn, his employer has been forced to lay off a large number of employees, including Rob.
Rob secured a new job back in Perth but on a much lower income than he was previously earning. Rob wants to maintain his repayments and commitments but just simply does not have enough money to cover everything. They attempted to consolidate the debts into a new loan, but, without any assets and due to a few late payments as well as a new job, they were declined. Mandy applied for temporary hardship relief with their Creditors, however the application was also declined as Rob still had an income and therefore was not deemed to be “in hardship”.
Rob and Mandy: Overview of current position:
|Credit Card 1||5,200||156|
|Credit Card 2||10,700||321|
Life After Debt ® Solution
Rob’s wife, Mandy, decided to call Life After Debt ® after seeing their advert online. She discussed their situation with one of our team who assessed their financial position and explained all of the available alternatives for them. With advice from Life After Debt ® Rob and Mandy determined that they met the debt agreement criteria, and that this was the best debt solution for them.
Life After Debt ® assisted Rob and Mandy in preparing the debt agreement proposals, arranged for them to be lodged and they were approved by their creditors.
Rob and Mandy’s monthly repayments have now been reduced to a manageable $850 per month, interest on the debts is frozen, and if they complete their payments as per the Agreement, they will be released from all of those debts. They are no longer being pressured by their creditors and the Debt Agreement credit file listing will be removed after 5 years (from when they began).
The Life After Debt ® solution:
- Rob and Mandy reduced their payments by $382 per month.
- They now have one single monthly payment to make.
- Avoided the prospect of bankruptcy.
(this case study is an example only and is not an account of an actual case)