Is debt mediation right for your client?
It can be difficult to assess whether your client meets the general criteria of debt mediation – however, you may be surprised by what is possible.
We see people from all backgrounds finding themselves with significant debt loads, all for a variety of reasons. On the surface, clients may have stable jobs and good incomes that afford them life’s luxuries, and still end up in debt.
Whether as a result of a significant life event, or simply poor management of their finances, even people who you may think to be financially sound can end up in stressful financial situations.
A mediation recently conducted by our team provides a perfect example. The client was running his own successful business and living comfortably with room on the side. Unfortunately, a workplace accident left him out of work for six months. During this period of reduced income, the client and his partner started to rely on credit to maintain their lifestyle. Once the client had recovered and returned to work, he found his once comfortable income was now evaporating every month due to the bills and credit card payments run up during his time out of work. Needless to say, there was no cash left over for the luxuries.
How did United Debt Assist help?
The client decided to refinance to consolidate his debts. He would have been able to afford the new loan, but he still wouldn’t be in the same financial position as before the accident. His broker referred him to United Debt Assist to mediate with his creditors and negotiate reduced settlement amounts. The client completed his refinance, and the reduction in debt meant that his monthly payments were greatly reduced, leaving him in a similar financial position as before his injury.
This situation exemplifies how debt mediation is not just for those who are struggling with low incomes and limited resources.
Mediation is beneficial to clients from all walks of life. As mortgage broking becomes less transactional and more relationship-focused, people are no longer looking for any broker to refinance their debt – they are looking for a trusted advisor who can help them achieve their financial goals. Working with United Debt Assist can support you to help clients achieve these goals, and become the trusted advisor they seek.
Get an instant answer to whether your client qualifies for debt mediation through BrokerBase.
Our market leading tool will analyse their situation and provide an estimate of how debt mediation can lessen their debt load. To access BrokerBase, simply fill your details into the form via the link below.
Disclaimer: The information contained in this article is general in nature and does not take into account your personal objectives, financial situation or requirements. Therefore, please consider whether the information is appropriate to your circumstance before acting on it, and seek independent advice from a finance or legal professional if necessary.