Get Answers

Weather the storm

2 March 2018,


RedZed: Product explainers to help you grow your own way

The situation

Katie Batterham has recently been through a divorce, and is an experienced, self-employed teacher who works across a number of different schools. On bad advice from her solicitor, Katie held off on debt repayments until the divorce was finalised. Unfortunately, this resulted in 5 defaults on her credit file.

As part of her settlement, Katie retains the house in her name. She maintained the repayments on the mortgage and is hoping to access the equity in her home to pay out the defaults and the final settlement with her ex-husband. When going to the banks she was declined on account of the defaults listed against her.

What’s the solution?

With evidence of her teaching contracts and a good mortgage repayment history, Katie’s broker was able to demonstrate the affordability and benefit of refinancing using the RedZed Debt Consolidation Calculator.

A number of these defaults were under $750. Two were significantly higher and only lodged recently. After taking Katie’s circumstances into account, it was identified that she qualified under RedZed’s Refresh product. Thanks to RedZed, she was able to consolidate her debts and pay out her unpaid defaults.