Anne is a retiree who had amassed over $15,000 in credit card debt. She had spent the money on household items and some medical bills and being on an aged care pension, she was now unable to afford the repayments. Her husband was also on the pension and tried to help as best he could. Anne had never considering going bankrupt before and saw it as an undignified approach to dealing with debt. She also didn’t want to lose her car. Unfortunately , her creditors were pushing to send her bankrupt as she couldn’t afford the repayments they were requesting and Anne thought her only choices were the drastic option of dipping into her superannuation or going bankrupt. Understandably, she didn’t want to do either but she didn’t know what else she could do.
We analyzed Anne’s situation to see what she could afford and then arranged for her to make a modest weekly repayment on her consolidated debt. It was interest free and set up so that she could clear the debt entirely within 4 years. Anne was thrilled at the new arrangement and is now on the path to being debt free. By avoiding bankruptcy she also has been able to keep her car, which has allowed her to stay mobile and keep her independence.
