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
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Financial hardship is when you are unable to meet your contractual debt obligations because of unexpected events that impact your cash flow, such as unemployment or having hours reduced, unexpected expenses, illness, family tragedy or a natural disaster.
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The benefits can include short term relief from repayments, more time to pay off your debts, freed cash flow to pay other bills, decreased risk of being defaulted or harming your credit score.
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Your credit cards will be stopped/cancelled during the hardship period so you can’t make any transactions on that account.
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Your credit rating is not impacted during the hardship period. However, if you have already defaulted on your debts prior to arranging hardship, then you may already be default listed.
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LTA is negotiating an agreement with your creditors to vary your credit contract with nil interest or reduced interest with monthly repayments paying off the balance of your debts over the next 5 to 7 years.
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FF settlement is negotiating an agreement with your creditors for a final settlement by offering a reduced lump sum to close your debts, rather than paying the full amount. (if you have lump sum funds to offer).
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Depending on your particular personal and financial circumstances, you could achieve one or more of the following:
- Interest frozen or reduced.
- Postponement of your repayments for an agreed period.
- Long Term Payment Arrangement – credit contract variation to extend your loan period, so you make smaller affordable repayments.
- Full & Final Settlement – pay a reduced lump sum to close your debts.