How we Helped our Client to Consolidate Debts and Save

We recently assisted a client who was self employed, to refinance and consolidate several debts. The Client was struggling to keep their head above water with various loan repayments, and being self employed, they were not sure how to approach a Lender about it.

Challenges faced

As a self employed person, the Client’s income was impacted by Covid / lockdowns in the 2021 Financial Year. Yet most Lenders assess a Self Employed person’s borrowing capacity based on their latest 2 x Tax Returns. The challenge was to demonstrate to the Lender why the Client’s income was impacted, how they coped throughout the lockdown period, and how they were recovering back to normal since the lockdown orders were lifted.

Some Lenders were also deterred by the large number of outstanding loans that needed to be consolidated.

Outcome

We conducted extensive research and recommended a Lender who approved the loan refinance / consolidation based on the Client’s recent BAS Statements which demonstrated their business / income was turning a positive corner.

The loan was approved at a very competitive interest rate.

The outcome of consolidating all of the debts into one saved our customer approx. $2,500 per month in additional interest, and they now have greater control of their cash flow.