Sometimes no matter what you try, unexpected bills and car breakdowns occur which put you in a tough financial situation.
I have seen many people come to me with bad credit or lots of credit card debt thinking they have no way out but to continue to pay more than half their income each month in loan repayments. But this is often not the case, as per the below example:
Nathan & Carly have owned their home for 8 years. They also have a car loan, a personal loan and 3 credit cards all maxed out which are putting a huge amount of pressure on them to repay.
It has gotten to the point where they are behind on some of these repayments and this has affected their credit rating. Due to this, many of the major lenders will not help Nathan & Carly.
Luckily they have some equity in their property so we were able to help them. There are specialty lenders out there which are aimed at exactly Nathan & Carly’s situation, but just bear in mind to be careful which ones you approach (or get an expert to help).
So we refinanced Nathan & Carly to a lender that was willing to take on all the debt and then consolidated all of the loans onto the one for $490,000.
This meant that Nathan & Carly only needed to make one loan repayment of $3,250 per month giving them an extra $1,300 per month and a heap less stress and phone calls from companies demanding repayments back.
We then put them in front of our Financial Planner (yes financial planners don’t just help rich people with too much money) to put in place a budget to make sure that this never happens again.
Nathan & Carly are much happier now as they have gone from a life of stress not knowing if they were going to have to sell their home or not, to one where they are now planning where they are going on holiday next.