Case Study

Debt Elimination Plan + Debt Agreement Client

Personal Details

• Single Female aged 23 years
• Nil dependants
• Currently employed part time while attending full time university studies
• Part time income is $32,000
• Financial difficulties due to relying too heavily on credit. After leaving full time employment to attend university which is 200kms from home.

Debts

• No secured debts
• Unsecured debts total $45,500 and include 2 personal loans, 1 credit card & 1 utility account
• Currently paying $269.00 per week in repayments

Assets kept by the debtor

• Cash - $400.00
• Vehicle - $11,350.00
• Jewellery - $4,000.00
• Household items - $4,000.00

Proposal

• Budget completed & weekly surplus identified. Commitment to monthly visits for Debt Elimination Plan, mentoring and support.
• Client will contribute $181.00 per week over 4 years to the repayment of their Debt Agreement & Debt Elimination Plan
• Weekly repayment savings of $87.00
• Total interest & principle savings $35,427.00

Outcome

• Creditors voted and agreed to debt agreement proposal
• All interest on accounts frozen
• Client continues monthly support visits
• Client displays improved wellbeing
• Positive Solutions Obtained