From Credit Despair To Financial Repair: A Couple's Stunning Recovery
A Quick Overview
| Details | Description |
|---|---|
| Customer Goal | To refinance their owner-occupied home and consolidate debts to reduce monthly payments and alleviate financial stress. |
| Problem | Multiple high-interest debts, including credit cards, personal loans, and a car loan, alongside a primary mortgage. A combined monthly payments total of $7915, driven by bad credit and recent missed repayments. |
| Loan Amount | $485,000 |
| LVR and Term | 69.29% Loan-to-Value Ratio (LVR), 30-year term |
| Income | Ben: $96,700 yearly Kate: $105,500 yearly |
| Solution | We secured a new financing arrangement with a monthly payment of $4260, for a monthly savings of $3655. |
Ben and Kate, a couple in financial distress, were grappling with the combined weight of unexpected salary reductions and rising living expenses. They found themselves overwhelmed by a series of high-cost debts that included five credit cards, three personal loans, a mortgage, and a car loan, cumulating in monthly expenditures nearing $7,915.
Complicating matters, many of these credit facilities were tainted with records of late repayments and over-limit charges, which was reflected in Ben’s low credit score of under 580.
This financial stress was compounded by their residence in a Category 3 postcode, adding another layer of difficulty in securing refinancing.
Reaching Out For Expert Help
In their quest for financial stability, they reached out to Home Loan Experts in June 2023, hoping to refinance their owner-occupied home valued at $735,000 and consolidate their overwhelming debts. The complexity of their situation required a nuanced approach, which is where Sid (Siddhartha) Bajracharya, a Home Loan Experts mortgage broker known for his adept handling of complex cases, came into the picture.
Sid's Patient Approach
Sid’s strategy was two-fold: First, he instilled financial discipline by guiding Ben and Kate to secure a month of clear repayments across all their liabilities. Though the task seemed insurmountable at first, Sid’s steady support and deep expertise lifted their spirits, and by September, they had regained control of their finances.
Next, Sid meticulously identified a lender capable of handling their unique situation. A lender that:
Specialises in high-risk locations: Sid found a lender that routinely handles properties in Cat 3 postcodes, ensuring that Ben and Kate’s location did not hinder their refinancing options.
Offers flexibility in debt consolidation: He chose a lender that could consolidate a broad range of debts, thus simplifying the couple’s financial obligations into one manageable loan.
Does not engage in Comprehensive Credit Reporting: This was particularly important. By selecting a lender that does not use CCR, Sid ensured that the couple’s past financial missteps did not continue to limit their creditworthiness under the new loan terms.
A Well-Deserved Victory
In less than a month, Sid turned a tough situation around. The refinancing application was submitted on 5 September and by 20 September, it was approved. The approval process included a week-long wait for the property valuation, but everything moved quickly. By 29 September, the loan was settled.
Thanks to Sid’s strategic manoeuvring and tireless efforts, the couple’s refinancing plan was approved by late September, slashing their monthly burden to just $4,260 – a life-altering savings of $3,655 each month.
As the crushing weight of debt lifted from their shoulders, Ben and Kate were overwhelmed with gratitude. Their glowing five-star review praised Sid, yet words could hardly capture the full depth of their appreciation for the role he played in rescuing their financial future from the brink of disaster.
The Loan Structure
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Interest rate: 7.24%, variable interest rate
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Term: 30 years
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Features: 100% Offset, extra repayment option, redraw option
A Brighter Financial Future
Through Sid’s expert guidance, what seemed like an insurmountable challenge was transformed into a manageable and hopeful future for Ben and Kate. His role was crucial but never overstated, highlighting the impact of professional expertise paired with a genuine commitment to client success.
Start Your Own Success Story
Inspired by Ben and Kate’s journey? If you’re struggling with bad credit and think there’s no way out, think again. Reach out to Home Loan Experts today and let Sid and our specialised team help you navigate the complexities of refinancing and debt consolidation. We understand the challenges of bad credit and are here to find a solution that works for you. Call us at 1300 889 743 or fill out our free online assessment form today. Let’s turn your financial tide together!