A good family under pressure get financial relief and long term support
A client case study – the important message:
If you feel you are building towards significant financial pressure, the earlier you speak with us the better because there are solutions out there.
Background
We commenced discussions with a great couple prior to Christmas. They have been financially diligent their entire lives and set up a successful building business which has done well over a long period, but unfortunately they were under pressure on multiple fronts –
- They own a home and had paid their loan down to $325k and had 60%+ equity in their home
- Their two children have ongoing medical issues taking an increasing emotional / financial toll
- Interest rates have risen, plus medical bills led to taking out more credit cards
- The construction business had a large customer who did not pay a very large bill
- Our clients tried chasing the $$ but the cost of a big legal fight was not an option
The Cycle
This great family had a financial scenario which was spiralling down quickly as they were –
- Getting behind in loans
- Taking on more credit cards, and going over limits more often
- Falling behind in tax payments
- Facing rising interest bills
- Finding it harder to looking after their family
The Solution
Gretchen searched for a lender who would accommodate them and listen to their scenario. In the current lending market, the Big 4 and 2nd tier lenders were not in the mix, so we had to think outside the square. It was easy for us to demonstrate this was a series of unfortunate circumstances which the couple was serious about fixing so in these scenarios, open and honest discussions with lenders is a big part in finding a solution to help customers.
New Structure
This is how our client’s structure will work over the next few years so they can breathe again as a family and start to get back ahead –
- All loans were combined into one big loan
- Their new rate is slightly higher than the market BUT their monthly commitment is much lower
- They will sit at Interest Only for 2 years, simply to get back on their feet
- During that time, in conjunction with their recently appointed financial planner, we will catch up regularly to help ensure they are on track in managing their new commitment
- After a few years, we will revert to P&I, and may even split out some of the lending and amend it to a shorter loan term
Vision Reminder
Vision has provided a solution which is just the first step in a long term strategy. Our job has only just begun. Our service is about empathy, knowledge, professionalism, and working with families for the long term.
To get in touch, email or call 02 8354 3000 to speak to a Sydney mortgage broker, or 02 4014 1999 for a Newcastle mortgage broker.
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Ditch debt and manage your finances: how to prepare a family budget
