Recently Mark contacted us for help with his own black hole of debt. As a single fifty something year old with a home, he had made a series of mistakes and fallen heavily into debt with credit cards. On top of his mortgage, Mark had over $40k in credit cards with double digit interest. This is something we do see as mortgage brokers, and it's important to note, that we have a no judgement policy at Wilson Financial.
Why? Because that's not our job! Our job is to be solutions oriented, and create a new page where our client can start to move forward again.
Based on Marks income and debts, his outgoings were much higher than his income. Trying to appease all of the credit providers and going onto payment plans had only gotten him so far. He dearly wanted to roll all his debts into one by using his homes equity, and never have a credit card again.
By obtaining all of Marks statements for each of his debts including his home loan, we were able to credit score his repayment conduct. What normally happens in these situations is that people fall so far behind in repayments that they have overdue accounts and late payment fees. Various lenders credit score you based on how many times you were late and how many payments in arrears you are. From here, we shopped around with our 'non conforming' lenders, who are there to help clients like Mark with consolidation. Of course a few missed payments may not affect your credit report, but it will prevent you from refinancing to a major bank. By using Marks information we were able to identify the cheapest loan option on our panel for his specific situation.
Once we found them we obtained a valuation on his property to figure out his equity position. We then helped him to complete a loan application and got him approved.
Mark was thrilled with the result, as the new repayments were much less than his existing outgoings. Mark was now saving over $2,500 a month in outgoing commitments which was a big weight off his chest.