Case Study – Luke’s Story

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Luke’s Story – A Personal Debt Agreement

Luke had a period some years ago where he found himself unemployed and in that time, just to meet his ordinary everyday commitments, he had to use credit cards and some short-term, high interest small loans.

Debts Quickly Start to Mount Up

Quite quickly these debts grew large and even though Luke eventually got a job he then struggled along for 18 months trying to pay back what he had borrowed.  With a big mortgage to service the money he had just didn’t stretch far enough. Finding just the minimum monthly repayments was hard and with late payments, default fees and interest being added he really was going nowhere fast.

Creditor Phone Calls Creating More Pain

Luke was under constant harassment from some of these creditors to increase his payments. Eventually he was sued by some of them and then came to us for help.

Luke’s Debts –

Creditor Type of Debt Total Debt Payments P/M
GE Finance Credit Card $  5,419 $142
NAB Personal Loan $12,123 $207
ANZ Credit Card $  9,354 $186
Citibank Credit Card $  7,207 $166
Credit Corp Old Loan $13 ,092 $235
Optus Phone Acct $      827 $  85
TOTAL $48,022 $1,021
  The New Payment by Debt Agreement $650

 

Debt Agreement reduces Luke’s payments

Luke entered into a Debt Agreement that we arranged with all of his creditors.  The creditors agreed to accept $39,000 paid in affordable monthly instalments over five years as full and final settlement of all of these debts (Interest saved est $40,124).

That was $650 per month instead of paying $1,021 per month.  The reduced monthly commitment was affordable and meant that Luke didn’t miss a payment.  Interest, overdue fees and recovery fees were all frozen.

Financial Turn-around – Light at the end of the tunnel

About two years into the repayments Luke changed to a higher paying job and, although he din’t have to, he chose to increase his repayments to finish the Debt Agreement off early and he was free of debt (other than his mortgage) for the first time in many years.

Enquire Now

  1. Do you have a house or car that needs protection from debt collectors?
  2. Do you have unsecured debts of more than $10,000?
  3. Is your gross income less than $108,000?
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Active Debt Specialists is based in WA, successfully providing debt solutions to individuals and businesses since 1998. We help thousands of Western Australians to resolve their debt, keep their family homes, continue operating small businesses and eliminate financial stress.

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For further assistance we recommend you:

  • Speak to your Creditors
  • Call AFSA on 1300 364 795
  • Speak with a Financial Counsellor
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Unfortunately, we are unable to assist you.

You need to have over $7,000 in unsecured debt to apply.
For further assistance we recommend you:

  • Speak to your Creditors
  • Call AFSA on 1300 364 795
  • Speak with a Financial Counsellor
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  1. Credit cards, store cards and personal loans are types of unsecured debts. Mortgages and car loans are not.