Success Stories: Michelle Kaba

Finding Help During a Dark Time

Michelle Kaba lived a perfect life – or so it seemed. She was happily married and all was going well. Her loving husband, John, worked hard and provided for her and their son.   One day though – it all changed in a flash– it was a nightmare of note. Sadly, Michelle’s husband was involved in a terrible accident at work and everything seemed to fall apart. Though his doctors did all they could for John his injuries were very severe and it was not long before he passed away leaving Michelle battling with emptiness, sadness and a feeling of desperation.

‘Sadly Michelle’s husband was involved in a terrible accident at work and everything seemed to fall apart’

Sudden Expenses

The funeral was expensive – with Michelle reeling with waves of shock and grief she could not really focus on the money – or lack of it – as there was just too much else demanding her attention. Added to the sudden funeral costs things began to get very tough as, without her husband’s income – day to day expenses were overwhelming and before long Michelle was just not coping. With all the mounting stress and emotional toil rushing in on her, Michelle’s performance at work suffered and eventually, she lost her job and describes herself, at that point, as a nervous wreck.

‘there was no life insurance or funeral policies’

A few months went by and harassing calls from creditors plagued her night and day. Hospital bills had accumulated and payment was being demanded. Creditors were all demanding money and since there was no life insurance or funeral policies, Michelle did not know where to turn. No one seemed to care that she had lost her beloved husband and was left to fend for herself and her young son.

Advice From A Friend

Sometimes when a family member or a friend is going through a tough time you feel the urge to try help financially (which you may not realistically be able to afford). But throwing money at a problem for a month or two is not a good long-term solution when it takes years to pay off debt. Fortunately for Michelle, a friend of hers told her about how debt counselling works and a company they knew of and after some thought, she gave Debt Counsellor Shawn Petersen a call. Shawn is the MD of a debt counselling firm called Debt Central. Shawn says he has a ‘passion to serve, inspire and assist people just like Michelle’.

Debt Counsellors Know Things You Don’t

Micheel thought that her situation could not be improved and that she would now be locked into her debt and that of her husbands forever. Because she was not employed you might wonder how could a Debt Counsellor help her? Isn’t debt review only for people who earn a salary each month and can make regular debt repayments? It is but a Debt Counsellor also knows things that you may not and will often offer free advice to consumers in a tough spot regardless of if they sign up for debt review or not. Shawn advised her that her situation was not “hopeless” as she had thought – she was advised to go to go to the Police station to get an affidavit about her circumstances to send to her creditors. She had not been aware of Linked insurance that had kicked in, covering the debt accumulated for several months until she could hopefully find new employment. This was something she never knew she had and was not told about when the need arose.

She also was told to get a death certificate pertaining to her husband’s passing, to show to the creditors so that cover for her husband’s debt could kick in. This credit life insurance is in place on almost all debts and can be claimed when needed by families to help them avoid getting trapped with debt from a deceased loved one.This then gave Michelle breathing space and time to compose her thoughts and begin facing the future with more confidence. It also reduced the overwhelming mountain of debt she thought she would have to pay off.

After peace resumed in Michelle’s life she felt more equipped to take on the challenges of a new job. This allowed her the opportunity of entering debt review with Debt Central under the guidance of the Debt Counsellor who had willingly given her free advice just a short time before (Shawn Petersen).

The Courts Restructure Her Debts Through Debt Review

Negotiations were entered into with her creditors and court papers prepared. Her various different debt obligation payments to different creditors were combined into one monthly payment amount (which she made via a PDA). In her case, her monthly obligations were reduced by the courts and by agreements with her creditors to 50% of the original amount which the creditors had demanded each month. She also benefitted by having the creditors agree to reduce interest rates as well (which saved her money over time). Within a very short time harassing calls from creditors became a thing of the past and Michelle said that she ‘felt that for the first time in ages she could embrace life and go forward’.

‘her monthly obligations were reduced by the courts and by agreements with her creditors to 50% of the original amount’

Working with her Debt Counsellor and by sticking to the plan each month, Michelle was able to pay down her debt fairly quickly. Her situation had gone from hopeless to hopeful. She was able to focus more on her emotional needs over just her immediate physical and financial ones. This assisted her with dealing with her grief – which is a very complex and painful thing to have to go through. Michelle soon achieved a clearance certificate and is now debt free – free to care for her son and to start rebuilding her life with strength, courage and optimism.

If you are going through tough times and even if you are currently unemployed you are welcome to talk to a Debt Counsellor for some advice on your situation. Get help, get advice.

 

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Thanks to Debt Central who helped share Michelle’s story with us. They offer debt review services and can be contacted via their website HERE.

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