How a Debt-Management Plan Could Solve Your Money Troubles

Are you waking up at night worrying about how to repay your out-of-control debt? Well, you don’t need to. With a little help and a debt management plan, you can tame your debt and get on with the things in life that matter. DG Institute CEO and Founder Dominique Grubisa explains more.

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Living with a large, unserviceable debt is one of the most suffocating experiences a person can go through. As the weeks and months pass, you find yourself missing repayment after repayment, the amount of money you owe grows steadily, and any hope of getting your finances back in order evaporates. Add to that, the threat of bankruptcy, black marks on your credit record and the aggressive behaviour of debt collectors, and you have a recipe for complete misery.

Reduce a $250,000 Debt To $40,000

If you have found yourself in trouble with a toxic debt that you can’t service – breathe deeply. While it may not seem like it now, there is hope, and you are in a stronger position than you might realise. With help from professionals accustomed to working with credit card and finance companies, big banks, and debt collectors, you are actually in a good position to negotiate down even the most frightening of debts. A quarter of a million dollars in mortgage arrears might be negotiated down $40,000, while $29,000 in credit card expenses might be haggled down to $8,000. In some cases, where the lender has made an error on your loan, you may even be able to walk away without repaying the debt at all.

So How Does It Work?

The first step is generally to contact an organisation that specialises in managing debt. You’ll go through an interview process and, with the help of experts, you’ll create what’s known as a debt management plan. This is essentially an arrangement between you and your creditors detailing how much you owe, how much you will ultimately repay, and the terms on which this will happen. It’s your roadmap out of debt and replaces your previous obligations and commitments with a new bottom line and a structure for making repayments. While you might assume, creditors like banks and credit card companies want to chase you to the ends of the earth to ring out every cent, the reality is they have better things to do. With the right negotiator in your corner, they can often be persuaded to accept cents in the dollar on money owed.

Knowledge Through Experience

For this reason, it’s important to look for a specialty debt management organisation that truly understands what you’re going through. Debt management lies at the heart of the DG Institute. As the founder, I learned the hard way about dealing with creditors after I went bust during the global financial crisis. At the time, I was a barrister with a multi-million dollar property investment portfolio. When the unexpected happened, a legal decision in a court case I was fighting went against me, which led to a succession of setbacks and ultimately to a point where I was unable to meet my repayments, and my life came crashing down. Fortunately, I had something no one could take away from me, that was knowledge. So, I used my training as a lawyer to negotiate down my debts and rebuild my life, and it was then I decided to help others in the same situation. Since then, my team and I have helped thousands of Australians to tame their debts.

90 Percent Reduction In Monies Owed

Want some real-life examples of what we do?

The team at the DG Institute recently worked with David from South Australia. David was left struggling to make ends meet after being made redundant from his job. With his income massively reduced, he and his wife racked up nearly $105,000 in unsecured debt via credit cards, personal loans and an overdraft. By negotiating with creditors on David’s behalf, DGI Debt Management was able to reduce the amount of money owed by almost 90 per cent – an impressive $93,000. With our help, David was able to turn his life around, and he and his wife are now planning on building a family home.

David’s case is far from isolated. We recently helped a Queensland mortgage holder settle a mortgage shortfall of $287,000 for $29,000, just 10 per cent of the original debt. We also achieved a credit card debt waiver on debts over two cards worth $11,560.55 and helped one client reduce a $100,000 business debt by $44,000. By identifying compliance breaches in a mortgage, we were also able to achieve a $38,000 reduction in the amount owed by another client.

So, don’t let bad debt keep you up at night. Creating a debt management plan could be the first step to rebuilding your finances and getting your life back on track.

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