No Debt Agreements
Stop the calls
Freeze interest & repayments
Reduce debts by up to 80%
We protect your credit rating
Full Support
Case Study 1 – The Artist
Debt – $28,000 in credit cards
Solution – Full and final settlement
Overview
Our 60-year-old client was experiencing financial hardship, due to significant decline in commissions for his art work. His financial situation had been deteriorating for a few years, however it wasn’t obvious to our client, as the rollercoaster ride he had been on had become a normal part of his life.
So he ploughed on as usual making artworks and using credit cards to cover his expenses, hoping things would get better, because they had done so in the past. Unfortunately, the latter year turned out to be a very tough one. Virtually no rewards for all his efforts – just more expenses.
Furthermore, there were no suitable employment prospects in the region our client lived in. Feeling despondent and hopeless at not being able to meet is living needs, plus meet his debt obligations, our client turned to ChapterTwo for help.
How we helped
Negotiated with his creditors for a 6 months freeze on interest and repayments
We provided breathing space and peace of mind for our client, allowing him to focus on his future goals
We were able to negotiate debt reductions with his creditors
Full and final settlement agreement was reached at an average of 45cents in the dollar
This meant a 45% lump sum payment (approx $12,500) was required to close all his debts
Case Study 2 – The Pregnant Pause
Debt – $90,000 in Credit Card & Personal Loans
Solution – Long Term Arrangement
Overview
Our client started experiencing financial hardship when his wife fell pregnant with their first child and faced complications during the whole pregnancy and after the birth of their child. This warranted ongoing medical attention and she wasn’t able to work.
Our client wanting to do whatever it takes applied for credit cards and personal loans to get by and fell into the trap of using his credit facilities to cover medical costs and the shortfall in income due to his wife not working.
Soon his financial situation spiralled out of control and our client was unable not meet his debt repayment obligations. This significantly impacted our clients mental state, as being the sole provider for the family this placed significant amount of stress on him. Feeling trapped and stressed with the constant bombardment of phone calls from debt collections departments, our client contacted ChapterTwo for help.
How we helped
We negotiated with the six creditors on his behalf and reached a Long Term Arrangement that our client could afford
The interest was waived on most of his debts and significantly reduced on the rest
Our client now pays the principle off over the next 7 years
We listen and learn
Create room to breathe
We settle your debt
Long-term payment arrangement
Frequently Asked Questions
ChapterTwo is here to help. We are there with you every step of the way; always offering support, advice and relieving you of stress as we bring you out of your debt cycle. We will look to freeze your interest, we will give you more time to pay your debt, and we will negotiate with your creditors for a reduced final settlement.
ChapterTwo can negotiate an informal arrangement for most unsecured debts based on a pro-rata distribution of your available income, after any priority debts or essential household spending is taken into account. If you can identify any of these outstanding debts, you should contact ChapterTwo immediately:
- Credit cards
- Unsecured or personal loans
- Store cards
- Debt owed after repossession
- Disconnected utility bills
- Phone bills
- Accounts in collections.
An informal arrangement is an agreement between you and your creditors. These agreements between you and your creditor are not bound by legislation or formalised by contract. ChapterTwo will work as an intermediary between you and your creditors to look to freeze interest on your accounts and in turn negotiate a settlement on your behalf. It is beneficial to have a professional when dealing complicated negotiations and ChapterTwo have experienced staff who deal with creditors daily.
An informal agreement is an arrangement that is entirely between you and your creditors. With the help of ChapterTwo’s negotiation process these arrangements are made mutually between the customer and the creditor. This enables ChapterTwo to negotiate settlements that do not effect your credit rating and can reduce your debts from anywhere between 40%-80%.
An informal arrangement can help relieve debt in a number of circumstances. An informal arrangement can help you by freezing the interest on your accounts with your creditors and by negotiating a reduced full and final settlement without impacting your credit file.
This option is particularly useful if you are experiencing any changes to your current financial situation. For example if you:
- Have recently become unemployed
- Unable to work due to injury or illness
- Received a decrease in salary etc.
Our clients who have experienced a change in circumstances like these have found maintaining repayments of their debts can become very difficult. ChapterTwo would recommend an informal arrangement if your financial difficulties are only short-term, as we can set up with a short turnaround, and the agreement does not get recorded on the debtors credit file.
ChapterTwo implements informal arrangements in a unique way, helping the client from initial engagements. Our professional team contact our clients creditors and look to freeze the interest currently accruing on their accounts which gives the client much needed breathing space. ChapterTwo in partnership with Critique Private clients develop a cashflow and budgeting plan that is implemented during this stay on their accounts.
Once a solution has been tailored to the individual, ChapterTwo will then informally negotiate a settlement on the client’s account saving them up to 80% of the original debt. As informal arrangements are not bound by legislation, ChapterTwo’s client’s credit rating is kept in tact during this process.
Debt can be so difficult to manage as interest is continually amassing on your debt, digging you into a deeper hole if you are unable to meet your current payments. An informal arrangement makes it possible to offer your creditors a fair share of what you can afford to pay, and in many cases, any interest charges you may have will be temporarily frozen. This enables you to focus on repaying the principle debt.
Rest assured, this form is not a commitment or contract, it just allows us to contact you for a quick chat as soon as we can
