Goal: Debt consolidation to enable a first home purchase
The Challenge A client was referred to us by a mortgage broker because they were unable to secure a home loan. Multiple credit cards and personal loans were severely limiting their borrowing capacity, and early credit challenges had negatively impacted their credit score.
Our Solution We needed to simplify the client’s financial footprint. We arranged a strategic $65,000–$70,000 debt consolidation personal loan, using a small amount of equity in the client’s unencumbered car as security. This allowed us to pay out and close all existing credit cards and smaller loans, spreading the new, single repayment over a manageable seven-year term.
The Outcome By drastically simplifying their cash flow, the client was able to comfortably manage their new repayment structure. Within 6 to 8 months, their overall credit score improved significantly. They returned to their mortgage broker in a much stronger financial position and successfully purchased their first home.
