CASE STUDY 1

Debt consolidation enables business growth

Lisa and Brett have always earned great incomes - Such great incomes that banks kept offering them credit card increases and more credit cards which was never a problem as they had the income to pay this debt. Problem started when they both decided to leave the corporate world and set up their own business - in which they were still in start up mode when they wanted to refinance. 

At the time they had credit card debt of $120,000 - the business was being built up - and they were using their personal credit cards to fund the business. They have equity in their home , but no tax returns and their ABN had only been active for 12 months. They were also paying $3000 per month just in interest from their credit cards.

Solution: offer a low doc option, requiring an accountants letter to consolidate credit cards into the home loan and have just one repayment. By consolidating their debt to a cheaper rate we were able to save Lisa and Brett $2500 per month. They were able to cut up their 5 credit cards and focus on growing their business whilst only paying 1 payment per month on their home loan.