Debt Agreement Example 3

Roman was struggling with his situation. He had $106,048.00 of Debts. He was also buying a house worth $580,000.00 with his brother. They had combined mortgages of $330,680.00 owing to the bank. He also had $27,100.00 in shares. He wanted to sort out the debts but protect his house and the shares.

His debts were: Credit Card 1 $15,644.00, Credit Card 2 $8,120.00, Credit Card 3 $16,478.00, Credit Card 4 $24,899.00 and Credit Card 5 $40,906.00.

He could see no end to the credit card debt. The interest was going up and up and he was sacrificing his day to day expenses just trying to keep even.

We prepared a Debt Agreement for him that was approved by his creditors. He now pays $390.00 per week for the next 5 years. That means that $101,400.00 paid over 5 years will completely clear all of those credit cards. He saved thousands immediately and saves over $1,700.00 in interest every month because his interest was frozen.

Roman was more than happy because he is now paying less than he used to but there is no interest being added on each month that meant he was getting nowhere.

Note: your situation may be different and require a different strategy.