Case Studies

  • Case

Perhaps you may identify with one of these scenarios:

Richard had over $144,250.00 in credit card and personal loans. This debt had grown over time as his business had been struggling for some time and he had been using these funds to stay on top of things. Like many people, Richard worked very hard and was doing all he could to turn things around with his business.

The problem was that he was paying interest with other credit facilities and he was simply unable to maintain payments on everything and the debts began to fall into arrears.

Richard had a property and with the help of a good mortgage broker he was able to arrange a new mortgage. Unfortunately, due to a low valuation the loan amount was not sufficient to pay all his debts in full and the credit provider would not settle the new mortgage unless all his creditors were paid and the accounts closed.

DebtX was able to negotiate with Richard’s creditors and have the combined accounts reduced from $140,000.00 to $71,400.00 The refinance was able to proceed and Richard saved over $70,000.00

Sam had a debt of $30,120.00 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, he genuinely thought the amount owing was not correct. He tried to explain this to the debt collection company but they were not interested in what he had to say. 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 with four years prior, and 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 down to $15,600.00, saving Sam over $13,000.00.

Author and Suzanna had a personal loan with a credit union. Author, a builder by trade, had injured himself and was unable to work. With Author out of work, it was not long until money became a problem and the interest payments on the personal loan fell behind. Author had called the bank and explained their situation. The bank did provide a short period of relief, however the problem soon returned after the bank demanded payments again. Being unable to pay the loan arrears, penalty interest on the account was accruing 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 negotiate with the credit union to accept a lower amount to clear the debt but they refused.
Author & Suzanna engaged the services of DebtX. We dealt with the credit union and negotiated the $94,160.00 debt down to $47,128.00, saving Author and Suzanna $47,032.00.

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 total led over $28,000.00. 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 charged.

Mary wanted a new loan to consolidate 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 get an approval for a loan amount that was $14,000.00 less than what she required to payout the current mortgage and all her other debts.

Mary then contacted us. After negotiation with her creditors, we were able to lower the amounts owed which allowed the refinance to take place.

Tanya and Matthew own their own business and had a number of 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 contacted Tanya and Matthew’s creditors, arranged for the legal action to cease, and negotiated a reduced payout amount of $4,500.00, a saving of $4,850.00.

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