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.
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
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
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.
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 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.
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