Dynamic debt consolidation

A service the SR Group offers where we settle our client's debts at significantly reduced amounts. We work at negotiating a discounted lump sum settlement with our client's creditors by refinancing their existing mortgage. 
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What type of creditors can we negotiate with

​There is no set parameters to who we can negotiate with however we have found we achieve outstanding results with unsecured creditors, such as:

• Credit card providers
• Personal loans and overdrafts
• ATO and OSR
• Trade creditors

​Here's a scenario demonstrating our Dynamic Debt Consolidation process. 

Scenario

Mr and Mrs Smith's financial situation:

• Own a property worth $660,000
• Current mortgage of $455,000
• Additional creditors made up of three credit cards and a personal loan add up to $86,000 of unsecured debt and is becoming unmanageable

If the couple were to approach a conventional broker and work on refinancing the unsecured debt into a new loan, the outcome would be unfavourable. The Loan to Value (LVR*) would be 88% and most lenders would consider not the proposition leaving the couple with nowhere to go.

Action Taken

The SR Group, via a partnering mortgage broker, has approached a panel of specialist lenders who can secure pre-approval for the refinance on the basis that unsecured debts are settled, and the new loan amount is at an LVR of between 80-85%.
Once we receive pre-approval, we then use our years of experience to negotiate with the client's creditors to achieve discounted lump sum settlements.
For example, if we refinanced at an 80% LVR ($528,000/$660,000 we would have $33,000 to negotiate with creditors which based on our previous results is consistently achievable.  ​

Our result

• Mr & Mrs Smith hold onto their home
• Their mortgage increases from $495,000 to $528,000.
• They are able to live without the burden of $86,000 high interest debt hanging over their heads.

Our client is now in a position to rebuild their future.

*Loan to Value ratio (LVR) is the amount of your loan compared to the value of your property. LVR is calculated by dividing the amount of the loan by the value of the property. For example, if the property is worth $250,000 and you have a deposit of $50,000, the LVR will be 80%.

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