Case study: keeping your home despite family difficulties

The stakes were high for Dave and Kaye, who were dealing with a child’s ill health and, as a result, extreme financial and emotional stress.

Dave and Kaye were facing a number of difficulties in their life. First, their second child had fallen seriously ill. The family was regularly flying interstate to a Melbourne hospital for the best treatment available, leading them to require time off work. Ultimately, the situation began to take a toll on their finances and they were struggling to juggle their mortgage and three overdrawn credit facilities.
Not surprisingly, it was also taking its toll emotionally and Kaye developed depression, which led to further time away from work. That’s when their friends referred them to an accredited finance broker.

“Dave and Kaye were robbing Neil to pay Max. Not only were they staring down the barrel of losing their home, but they were battling the very challenging emotional strains of caring for an unwell child and a partner with depression,” their finance broker recalls.
In such extreme circumstances, the broker employed the services of a debt collector for the first time. While the fees were hefty ($550 was payable on each refinanced facility, as well as 15 per cent of the total amount saved), it was imperative that the financial stress on the family was resolved as quickly as possible.

“It was a non-conforming situation, so I decided the debt collector was the simplest step to take,” says the broker. “He negotiated their collective credit card debt down from $48,000 to one payment of $15,000. I then arranged for a property valuation to be done and started to work backwards from there.”

The finance broker was also able to refinance Dave and Kaye’s home loan, negotiating far more manageable repayments that avoided them losing their home.

“This course of action not only enabled Dave and Kaye to return to full-time work, but also saved their family home,” says the broker. “They were faced with losing their house and their health, but after working together with a lender and debt negotiator, we were able to turn their lives around.”

Dave and Kaye’s child has recovered and the family is now looking forward to what the future holds.

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