John is a key account Manager in sales and spends most of his time on the road and earns $52,000 per year. John recently broke up with his life partner which was unexpected. He and his partner obtained credit to purchase furniture and other household items, but when they broke up John was left with all the debt as the credit cards and personal loans were in his name. Not only did John have to deal with the break up but he also had to deal with the debts his partner left behind.
John found out quickly he could not cope with his commitments and the debts started to fall into arrears. The creditors were ringing him every day and were hounding him for money. John now suffers from depression and needs medication to cope with his anxiety. John went to his local bank and applied for a consolidation loan but it was refused. He was refused as his debts were in arrears. He spoke with a friend of his with whom he confided and his friend suggested he call Get Debt Free to find a solution.
|Creditor||Interest Rate||Balance||Minimum Monthly Payment|
|GE Creditline||29.99% p.a.||$3,375||$105.00|
|ANZ Bank||14.49% p.a.||$6,056||$126.00|
John’s debts totaled $49,471 and his minimum monthly repayments were $1,009 per month. In the Debt Agreement Proposal John offered to pay $338 per fortnight for 130 fortnights (5 Years) to his creditors. This represented a reduction of his monthly payments in the amount of $276. In total John’s creditors would receive $33,006.64 making the return to creditors 65 cents in the dollar as full and final settlement of his debts. The creditors voted on his proposal and it was later accepted. Once John has finished his obligations under the Debt Agreement he will become Debt Free.
If you would like to find out more about a Debt Agreement contact us on 1800 677 551 or apply on-line for an instant preliminary assessment.