Debt Consolidation – A First Hand Experience

I want to give you a behind the scenes peek into what happens when we help you get free from the debt that keeps you up at night. No slick sales gimmicks – just a first hand view of how folks just like you got relief. Here is the raw-uncut account of how ‘Greg and Fiona’ did it:

Till Debt Do Us Part

Looking as uncomfortable as as a teenager in church on Sunday morning – Greg walked past me into the boardroom set aside for initial consultations. Fiona rolled her eyes and confided – ‘he’s not comfortable with the debt situation’. I nod as this is not new territory for me. Most couples have different ways of handling debt and Greg was a classic case of denial of the severity of their debt situation. The worst part was there was no one they trusted that was there to help them understand the consumer debt trap that they had fallen victim to.

Credit Card Debt – It Wasn’t Me

I asked the couple a number of basic questions like how much consumer debt they had and if they were up to date with payments on their mortgage, cars, bills, etc. Then we came to the credit card. This is where Greg got upset with Fiona – ‘I told her not to use the card anymore. It got us into trouble last year and she promised.’ Fiona protested but it was no use. She was adamant that she did not use the card since they agreed to lock it away in the safe and just make the minimum payment until something would change and they could begin to pay it off. I let them get the steam out and then when they calmed down explained what was going on.

Visa’s Business Plan

When they got into trouble with their credit card – the company jacked their interest rate to an appalling 28.9% until they paid it down to below the limit and made a number of monthly payments on time. What our couple was not aware of was that when they locked the card away in the safe – the interest against them was growing and it was out of control. The Rule of 72 dictates how quickly your money will double based on the rate of return. For Greg and Fiona – the original amount that they owed was doubling against them in favour of Visa every 2 and 1/2 years (72/28.9=2.49yrs). That means if they only made the minimum payments each month – the principle owing will keep growing until we have our present situation. Greg thinks Fiona (and this can be the other way around gals) is secretly spending on the card when in reality they have just become another victim of Visa’s business model.

Staring Down The Debt Mountain

A calm fell over the room and I even heard a small apology escape Greg’s lips when he thought I wasn’t paying full attention. Fiona had a look of justification in her eye but all was not made right just yet. We were still to complete the hardest step of all. I crunched some numbers on my calculator and told our couple the hard truth. They had a mountain of debt. The good news was that there were options available to them to assist in turning the situation around. After listing all of their debts and assets – Fiona expressed surprise that they still had a positive net worth. Greg chimed in that the property they lived in had received a very favourable valuation from a Realtor friend of the family. Armed with these initial figures – I was able to let them know that a simple debt consolidation was an option as we were just under 80% of the value of their home.

Alternative Debt Solutions

Greg and Fiona were fortunate that there were still traditional options available to them. I meet families all of the time who do not meet today’s mortgage qualification guidelines. For these folks – there are alternative solutions that will meet their needs and give them the opportunity to turn their situation around. Private Mortgage loans are where either a private citizen or a company loans their funds to someone who is outside of the bank’s mortgage guidelines and the qualifications are much less strict. Self Directed RSP mortgages are another creative solution to overcome higher debts and loan up to 100% of the value of your home.

Many Canadians are still today dealing with monthly consumer debt that is crushing them. As our couple here has clearly illustrated – this need not be. I have assisted hundreds of families just like yours pay out high interest debt and get a fresh start on life. Don’t let guilt and fear keep you from taking the first step and reaching out to someone who understands this. It gives me a great sense of purpose to be able to stick it to your high interest debt by paying it out and getting the man off of your back. Talk to me.