In our next happiest client short story, a Sydney broker explains how he helped a couple who were swamped under credit card debt amounting to $300,000 in unsecured liabilities.
ChapterTwo finance executive John Ingate's story of helping a middle-aged couple out of substantial levels of debt shows how brokers can find a solution when so many others have given no as an answer.
First meeting
When Ingate first met with a couple in their early 50s (let’s call them Jane and her husband Bill) they had lost control of their finances and were wrestling with a mountain of debt that could result in losing their house. The debt had accumulated after they had helped out family members struggling through financial hardship and medical issues.
“Their considerable monthly interest repayments had become unsustainable, which was in turn having a detrimental effect on my client’s mental state.”
Ingate describes his clients being “extremely concerned with their current situation and were willing to change their lifestyle to ensure they wouldn’t suffer with debt into the future”.
Above and beyond
Ingate recalls that his clients were feeling defeated after they had already been recommended bankruptcy by a string of other financial service companies they had sought help with. “Thankfully, here at ChapterTwo we had the perfect solution for them - our unique service known internally as a Debt Negotiation Refinance or DNR – which involves settling unsecured debts at a reduced amount by providing an upfront payment to creditors via the refinancing of a client’s property,” explains Ingate .
ChapterTwo’s negotiation team engaged with all the client’s creditors for over a month until a settlement was reached that all parties were happy with.
“I feel it’s important to note that all the banks and creditors involved were exceptionally professional and empathetic to our clients situation. They understood the hardship and reasoning behind the accumulation of debt and were very happy to settle the debts at a mutually beneficial amount of 50c in the dollar.”
Moral of the story
Alongside the financial benefits of the outcome for Jane and Bill, they were able to hold on to their long-time family home. “Now they have a new lease on life and absolutely no unsecured debts,” says Ingate .
“I would recommend to any broker that when dealing with clients with emotional stress, it is very important to be sensitive and empathetic to their situation and to their emotions during what is a highly stressful time. It’s critical that you carefully walk your client through the entire process, keeping them as informed as possible throughout.”
In MPA’s happiest client short story series we show-case stand out ‘client success stories’ from brokers and discover what they learnt along the way. Leaving aside the details of the deal, we explore the human side of the story and how brokers really make an impact in people’s lives. If you have a client story you would like to share please email the editor.
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