How a Debt-Management Plan Could Solve Your Money Troubles

Dominique Grubisa
Dominique Grubisa

Published 12:58 am 26 Oct 2020

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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.

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.

If You’re in Debt

Being in debt places you into a precarious financial situation which can quickly snowball into a catastrophe.

One of the clients at DGI Debt Management was a business owner and the primary provider for his family, when the pandemic hit and dramatically reduced his income. In order to continue paying his bills and putting food on the table, he began to take on more debt than he could afford and quickly found himself with $20,642 in debt.

The Debt Management team was able to reduce his debt down to just $3,759, cutting 82% of his total debt off and giving him the breathing room he needed to get back on his feet.

On top of that, he no longer had to worry about the possibility of bankruptcy, or having to deal with creditors anymore.

To find out if the Debt Management team can improve your debt situation, visit DGI Debt Management today.

Good Debt Vs Bad Debt With Dominique Grubisa - DG Institute

Lawyer, Asset Protection Specialist and Property Educator

Dominique Grubisa is a practicing lawyer with over 25 years experience. She is a property investor and developer, an entrepreneur with businesses in Australia and Southeast Asia, a speaker, educator, writer and published author.

This column has been written for general information purposes only. It is not intended as legal, financial or investment advice and should not be construed or relied on as such.

About DG Institute

Founded in 2009, DG Institute strives to empower everyday Australians to grow and protect their wealth. Our goal is to provide direction, motivation and inspiration to our clients and help them perform at their very best. We do that through our professional services, in addition to teaching them how to grow their wealth through property and business education.

This column has been written for general information purposes only. It is not intended as legal, financial or investment advice and should not be construed or relied on as such.

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