Cindy Clemons had a total debt of $12,980.00 and she was three months behind on her bills, with the creditors calling non stop. She could no longer meet the minimum payments on her three creditors. The creditors wanted a minimum payment of $970.00. Her credit report was showing that she was 90-days late and her average interest rate with her three cards was 22%. At that pace it would take her 18 years to get out of debt.
Once she got started into a Consumer Debt Consolidation program her interest rates were reduced to 8.2%, her monthly payments went from $970 to $330 and she will be debt free in 47 months or 3.9 years. The creditors have stopped calling and agreed that after she made three consecutive payments in the program that they would re-age her account to show it never late on her credit report.
$640 monthly savings
$47,520.00 Interest savings
Getting divorced makes financial status even worse
Both nice-to-fivers, Ms. Sophia and Mr. Nick do not own their house. Ms.
Sophia were already had large, but affordable credit card debts before getting
married. During their marriage, Mr. Nick took care of all the fees, such as gas
fee, utilities, heating and household payments. However, after she got divorced,
the income dropped to a single wage and she has to pay everything that was
paid by her ex-husband. She could not longer afford what her credit card debts
and was asking for help. Her salary is 36,000 USD a year after tax and her debt is 202,396 USD with six payments a month. After consulting our professional
debt management counselors, there is a big chance in his total debt. The
previous interest rate was 20%.Now is 6%. The monthly payment was 854 USD,
It is 618 USD. In addition, the time to pay off the debt has dramatically dropped
from 99.1 years to 4.1 years.
Interest rate: 14%, from 20% to 6%
Monthly payment: 236USD, from 854 USD to 618 USD
Total saved money: 160,850, from 202,396 USD to 41,546 USD
Total pay-off time saved: 95.2 years from 99.1 years to 4.1 years
Robert Swanson needed help with eight (8) credit cards. He had a total debt of $69,703.00 and his average interest rate was 26%. At that pace would have taken him over 75years to be debt free.
The creditors wanted a minimum payment of $1,589.00 per month and 1/10 of that would have been going to his principal balance. After enrolling in a debt management program he now has an average interest rate of 10%, and a new monthly payment of $958.00. He will be debt free in 5.2 years.
$631 monthly savings
$216,497.00 Interest savings
Eric is 25 years old and he is been working in the company for 3 years since he graduated from University. Life is smooth but he doesn’t save any money. He has a girl friend and is getting marred soon. However, he has not been saving
money for the marriage. Besides, he has spent lot of money on clothes, eating
our without friends and socializing. By only earning 32,400USD a year, he applied for 5 credit cards for his fancy laptop, cell phone and name-brand clothes.
In
addition, he still has to pay for his student loan debt of 120,000USD. He really
got confused if he can make it to pay off his debt and get married with his love
one. By having five credit cards, he has to pay five times a month. More often
than not, he forgot to pay some bills and the late fees accumulate, so are the
total debts. He
is now suffering from the financial difficulties
by all those debts. Luckily, he came to Global Credit Consulting Group (GCCG) for help and under the aid of our
professional counselors, he only has to pay 37,396, comparing with the previous amount 47,499.In addition, the interest rate has dropped from 22.5% to 12.5%.
There is also a reduced monthly payment from 1,700 USD to 838 USD. The
most important part is that he can afford a honey moon holiday in Europe with
the benefits of the debt management plan.
He reduced 10,103USD
Interest rate drops: 10%
Monthly payment drops: 862USD
Total saved money: 10,103USD
Total pay-off time saved: from 14.1 years to 3.9 years
Mary Summers had a total of 5 credit cards and 3 Medical bills that she needed help with. She had a total debt of $39,849.00. The monthly payment that her creditors wanted was $1,340.00 and her average interest rate was 27%. It would take her 56.5years to get out of that debt. Once enrolling in a Debt Consolidation Program her new monthly payment is $824.00 and her new average interest rate went to 6%. She will be debt free in 48 months or 4 yrs.
$516 monthly savings $112,542.00 Interest savings
Business failure
Due to the economic stagnation, Robinson has been job-hunting for 6 months. Before he quit his job, he could still get by with his salary in the amount of 38400 a
year after tax. With such salary, he should be able to get his finance balanced.
However, in order to run his own business, he took out a loan from the bank and the investment was failed. He was heavily indebted with 46,071 USD. Now, he has to use credit card to support his daily life whilst looking for a job. The 6-month unemployment makes his debt even more unmanageable. He now has trouble paying the minimum payment of 373 USD for all this debts. He contacted us, and on reviewing his
finances and situation, we discovered that he is paying the interest rate too high. Besides, after our customized debt management plan, he has his total debt reduced
greatly and this really lifted the weight off him shoulder.
He reduced 3,070 USD, from 46,071 to 15,301 USD
Interest rate drops: 16.8%,from 25% to 8.2%
Monthly payment downs: 83USD from 456USD to 373USD
Total saved money for interest: 31,900USD
Total pay-off time saved: 433 months, from 38.9 years to 2.8 years
HOME > Case Study >Case Study1~6
