Her Story:
*Based on a real client – for privacy, some details have been altered.
Meet Mrs. S
Mrs. S lives on her own in her home with few family around her. Widowed at a young age, she is illiterate and struggles living independently with a learning disability. Having worked in the manufacturing sector for most of her life, Mrs. S’ retirement income was limited. She recently faced unforeseen medical expenses, and also found that the rising cost of living in Saskatchewan put a strain on her finances. She decided to take out a loan for some support in paying her bills and day-to-day expenses. As she grappled with health concerns and financial difficulty, Mrs. S found herself caught in a cycle of debt, unable to meet the escalating monthly payments. She had previously filed a bankruptcy some years prior, and had been discharged. Mrs. S knew she needed professional help again, so turned to Spergel for support.
The Challenge
The main challenge in Mrs. S’ situation is the financial predicament she faced due to her high-interest loan. Her illiteracy was also a significant hurdle, making it complex for her to understand the terms and conditions of the loan she had taken out. She owed over $5,000, which was quickly compounding due to the high interest on the loan, and she only had a limited fixed income. Her limited financial literacy also further exacerbated the situation, preventing her from making informed decisions about her financial wellbeing. Overcoming Mrs. S’ emotional distress was crucial in guiding her towards a solution and ensuring her active participation in the resolution process.
Solution
Not knowing where to turn, Mrs. S contacted Spergel, the ‘get rid of debt’ people. One of our expert Licensed Insolvency Trustees addressed her circumstances with empathy, providing her with a clear understanding of her financial situation. The team broke down complex financial terms into simple language that she could understand. After a thorough assessment of her circumstances, we recommended Mrs. S file a consumer proposal. This approach aimed to reduce her monthly payments and provide legal protection from creditors, offering a manageable path to debt recovery.
Implementation
In order to address Mrs. S’ concerns about affordability, we provided a transparent quote, breaking down all the associated costs of a consumer proposal and offering clarity on fees. We helped her to file the consumer proposal, working to gain a significant reduction in her payments. This provided immediate relief, making it much more feasible for Mrs. S to meet her financial obligations and cover all her essential living expenses.
Results
Our Licensed Insolvency Trustee helped to prepare and file Mrs. S’ consumer proposal. As her debt load is relatively low, we proposed a monthly payment to her creditors of $80 a month, a huge 80% reduction on the loan payments she was having to make before approaching Spergel. Her creditor accepted – it put an immediate end to the interest she was being charged, and she was protected from threats from her creditors. It not only addressed her immediate financial challenges, but also empowered Mrs. S to regain control over her finances, fostering a sense of security and peace of mind in her retirement years.
Even after the resolution, Spergel maintained regular communication with Mrs. S to monitor her progress and provide ongoing support. This ensured that she continued to navigate her financial journey with confidence and stability.
Conclusion
This case highlights the importance of tailored and empathetic financial solutions, especially when dealing with vulnerable clients. At Spergel, our commitment to understanding individual needs, simplifying complex information, and providing reassurance contributed to a successful resolution for Mrs. S.
Results
“I’m incredibly grateful to the Spergel team for guiding me through a challenging financial situation. With their kind approach and transparent communication, they helped me to understand and navigate a high-interest loan. The reduction in my monthly payments through a consumer proposal brought immense relief, and their ongoing support made a lasting impact on my financial well-being. Spergel not only resolved my financial issues but also restored my sense of dignity and independence.”
— Mrs. S, Saskatchewan
Are you also struggling in Mrs S.’s situation?
If this feels close to home, there are lots of ways we can help:
- Debt Consolidation and Management
- Budgeting
- Credit Counselling
- Debt Help
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