Debt Free helped Paul with a Debt Agreement

7 May 2012 by anthony in Debt Agreement

Read how a Debt Free helped Paul with a Debt Agreement..

Paul is a single man employed as an Interior Decorator who was struggling with his personal loan and credit card for more than 12 months. Paul was earning just under $50,000 per annum. Paul’s troubles began when he lost his job due to a drink driving charge. He was then forced to give up his current employment and found local employment.

Whilst Paul was unemployed his debts kept mounting up as he could not pay them as they fall due. Some creditors lodged defaults on his credit record and one creditor threatened legal action.

Paul was struggling to keep up with all his payments, including his secured car loan repayments. He called Debt Free when Esanda had repossessed his car. Paul’s accounts fell into arrears as he did not even have the money to keep up even the minimum monthly payments. His debts totaled $39,683.00 and his minimum monthly payments were $1,737.72 per month or $404.12 per week.

Creditor Interest Rate Balance Minimum Monthly Payment
GE Money 34.95%p.a. $8,303 $363.72
ST GEORGE BANK 12.95%p.a. $8,898 $560.00
ESANDA FINANCE CORPORATION LIMITED 12.95%p.a. $22,049 $814.00

Get Debt Free did a free debt assessment for Paul and prepared a budget which Paul felt he could afford.  After that Debt Free then prepared a Debt Agreement Proposal which included a weekly contribution into his Debt Agreement of $150 per week.  

This represented a saving on the minimum monthly payments of preparation of $254 per week. Paul agreed to pay this weekly amount for 260 weeks (5 years).  The creditors accepted his Debt Agreement proposal and Paul was delighted.  Paul’s creditors will receive a dividend of approximately 70  cents in the dollar over 5 years.  

This Debt Agreement proposal provided creditors with a better return than what they would have received if Paul had been forced into bankruptcy.  Once Paul has paid his 260 payments of $150, his debts will be fully satisfied and the 30 cents in the dollar will be fully written off.

If you would like to find out how a Debt Agreement proposal could be tailored for you please contact us today on our toll free line on 1800 9810 70 or apply online for free debt assessment.