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Finance Articles
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A Real Life Case Study - Another Happy Customer
By Mike Makler
Consumer Debt Management It was fun whilst it lasted. You applied for a couple of credit cards, had a store card on the go and even took out a hefty car loan not so long ago. The more purchases that you made on your cards the higher your monthly repayments became and now you find yourself in the position of making repayments each month with nothing left in the bank. It was easy getting yourself into debt but it`s a lot harder digging yourself out of this hole. Having lived the life of Riley for quite some time the reality has hit you hard and you now need to find an effective solution that can help you to manage your finances better in the future. Help with Consumer Debt Managementcan be found through debt solution teams. They provide structured Consumer Debt Managementadvice to tons of people and can provide you with a plan to help you to get yourself back on your financial feet. One of the schemes that the debt management firm can provide you with is a structured plan for all of your unsecured loans. They will calculate what you can afford to pay each month, negotiate with your creditors and you`ll then pay the Consumer Debt Managementfirm one fixed monthly figure from then on.
I have a client a single mom with 2 children. She managed to save small down payment and decided to but a house. The problem is how much house could she afford. At the time she bought her house she could only afford about $700 a Month PITI. We managed to get her into a $120,000 house with 10% Down. Her Mortgage payment on a 5 Year Option ARM was only $440 a month for the first 5 Years leaving her $260 a Month for Tax and Insurance. At the time she bought her house 2 years ago she was thrilled to get the loan. I ran into her recently and asked her how things were going she said she was a little disappointed in her loan because she now actually owed more on her house then when she got the loan a little over 2 years ago, I said to her let`s set up a half hour appointment where we can talk it over and see how we can solve the problem. We got together a week later and discovered in 2 years the amount she owed (her principal) increased by less then $2,000 yet her house appreciated in value over $15,000 based on recent comps in her area. An unrealized gain of over $13,000. I said to her what is better to be a renter and pay your Landlords mortgage or be an owner and pay your own mortgage. I further explained to her how each month she has We looked at some refinance options but she decided to keep the loan she had because it did give her 4 payment options each month
A lesson I learned from this is even if I think a customer understands the loan at closing it is always best to follow up every few months. I turned an upset customer into a happy customer and got a referral out of it, I am now following up with all my option arm customers. 
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