Case study: saved by the refinance

Things had taken a turn for the worse for James Merrick, with looming debt threatening to force him into selling his home.

A baker employed by a large company, James had taken the opportunity to work overtime to help relieve his debts, but no matter how hard he worked, he could not seem to catch up with his bills.

“James couldn’t understand why he couldn’t keep pace. It was all mounting up and getting a bit too hard, but he called to see if we could help him refinance,” his finance broker explains.

“He had 13 outstanding debts, including three court judgements. His documented outgoings, before he paid living expenses, exceeded his net income by about $1500 per month.”

When James realised that he could lose his home or investment property due to his inability to pay his creditors, he decided to get serious about sorting out a way to get through his financial issues.

“I took him through a process of putting all the information together, working out that we could refinance him in accordance with NCCP,” says his finance manager.

“I also suggested that he seek independent legal advice and referred him to a solicitor. The three of us worked on the arrangement together. Another reason for engaging independent legal advice was that, if his finance had fallen over, he then had developed a relationship with a solicitor who could help him through the sale of his property.”

Together with his finance manager and solicitor, James was able to refinance his debts into a loan that worked for him. He is now able to handle repayments of all of his debts, didn’t lose any of his property and has enough money to live on.

“It definitely wasn’t guaranteed that we were going to be able to refinance him. But we found a lender that was happy to accept the loan, and now all is well.”


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** Names have been changed to protect client’s privacy.