Case Studies

Real Case Studies On How We Have Helped

We have detailed a number of different case studies that cover the full scope of why people can get into debt trouble, and what we have done to assist them to get out of it.

Medical Issues

The RC Family had accumulated $100,000 worth of unsecured debt and had fallen behind in their mortgage repayments. An eviction notice was issued. This was the result of ongoing medical costs along with modifications made to the home to cater for one of their 3 children who was mentally and physically challenged.

The RC family aligned themselves with specialist Mortgage Mangers, Fundsnational Pty Ltd who achieved an Unconditional Approval with a Specialist Lender. This enabled the family to keep their home, a high priority as the modifications to the home were important for the child’s safety. As part of the refinance, Choice Debt Solutions negotiated their debt from $100,000 down to $40,000. That’s a 60% saving!! The RC family now has a new mortgage which is maintainable due to their credit cards and personal loans being settled for less.
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Total debt $100 000
Reduced debt to $40 000
Saved $60 000

Mr K is a 63 year old self employed client diagnosed with Prostate Cancer. He had surgery and months of treatment which triggered the loss of all his clients. Once fully recovered, he found full time employment however during his recovery period, Mr K used up his life savings and accumulated over $78,000 in credit card debt.

Unable to get on top of his debts, Mr K’s mortgage broker obtained an approval for refinance with a Specialist Lender. Not having enough funds to payout all debts, CDS negotiated his debts down to $40,000 saving Mr K over $38,000 allowing the refinance to settle and Mr K an opportunity to focus on his health. Awesome Result!
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Total debt $78 000
Reduced debt to $40 000
Saved $38 000

Failed Business

Mr & Mrs H had invested in a hospitality business that was mismanaged by one of their partners and eventually became insolvent. Mr & Mrs H had poured their life savings into this business as well as accumulating substantial personal debt with credit cards and loans.

Their brokers successfully obtained an Unconditional Approval for a refinance of their home with a specialty lender. Choice Debt Solutions successfully negotiated their debt by 50%, saving the clients $29,000. The reductions assisted the clients paying out all of their creditors leaving them debt free. What a great result by all parties.
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Total debt $58 000
Reduced debt to $29 000
Saved $29 000

Mr N is a jeweller whose business was suffering due to cash flow issues. Part of that problem was $45,000 in credit cards. Mr N refinanced this home and used the equity to payout his credit cards. Unfortunately, he was a little short so CDS negotiated a reduction in payouts for the credit cards saving the client $17,500.

This reduction kept his Loan to Value Ratio under 80%, allowing a cheaper, more affordable rate on his new home loan. Mr N is now able to focus on making beautiful jewellery without creditors constantly hounding him for payments.
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Total debt $45 000
Reduced debt to $27 500
Saved $17 500

No Assets

Mr K is a 71 year old retiree. He and his wife have no assets and live with their son and daughter in law. Mr K had a significant fall 2 years ago and as a result has been diagnosed with a Neurodegenerative disorder. Mr K was referred to us carrying $139,000.00 in credit card debt.

Choice Debt Solutions negotiated on behalf of Mr K and had all debts waived to ZERO. A record result!
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Total debt $139 000
Reduced debt to $0
Saved $139 000

Mr M owned and operated an Earthmoving business which ceased trading as a result of his marriage breakdown. With over $114,500 worth of personal debt, no assets and currently living off Centrelink payments his accountant was about to lodge his Debtor’s Petition to become bankrupt when Choice Debt Solutions services were referred.

With minimal funds available, CDS negotiated $114,500 down to $21,500 saving the client a whopping $93,000 and avoiding bankruptcy. What a fantastic result.
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Total debt $114 500
Reduced debt to $21 500
Saved $93 000

Change in income

Choice Debt Solutions was introduced to a client who was being issued with a Bankruptcy Notice. He had a total of $30,000 in unsecured debts plus Council Arrears. This was all the result of a period of unemployment. Now in full time employment, he was finding it difficult to get on top of his debt so he did what most of our clients do, and refinanced his house to use the equity.

As usual, there were not enough funds to payout his debts in full, so CDS was employed to negotiate these down by the required $8,000. Mr M now has all debts paid out and his home is secure with his new lender.
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Total debt $30 000
Reduced debt to $22 000
Saved $8 000

CDS successfully negotiated $80,000 of debt down to $33,000 saving the client $47,000! That’s a 60% saving!

Mr & Mrs F came to CDS with the Sheriff at their door ready to change the locks on their family home. This was the result of several work injuries sustained by Mr F impacting on his ability to earn an income for over 12 months.

With their mortgage in severe arrears and combined credit cards totalling $80,000 there were very few options. Thankfully their broker was savvy enough to consider a specialist lender. A combination of hard work from their broker, consideration from a specialist lender and negotiations from CDS resulted in the clients keeping their home. Happy Family!
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Total debt $80 000
Reduced debt to $33 000
Saved $47 000
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