Mandy’s debt-free future

Mandy*, 37, is single and works for a major airline. She had accumulated a $30,000 debt on four different credit cards. Unable to pay, she considered voluntary bankruptcy and turned to Wesley Mission’s Creditline Financial Counselling Service to find out more.

Creditline offered Mandy a range of options, taking into account her situation, earnings and goals, helping her to address her debt and to hopefully avoid bankruptcy. She selected the first option, a money plan based on her income and expenses, leading to the development of a personal and professional goal plan. With Creditline’s help, Mandy contacted creditors offering to make a realistic repayment over time, with a final payout from a $20,000 loan from her parents/bank. Creditors agreed to payments amounting to $20,000, even though the debt was $30,000. The bank agreed to a loan of $20,000 to Mandy’s parents, interest-free.

She is now gradually repaying her parents. In a phone call, Mandy said, “I can’t believe I saved $10,000 and have not gone bankrupt. Now I can save money. Thank you very much - without your support I never thought I could avoid bankruptcy.”

*Not her real name.