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Empathetic Resolution for a Vulnerable Client: Spergel Helps Mrs. Smith Tackle Her High Interest Loan

Mrs Smith is a 68-year old woman with a learning disability, living independently in Saskatoon, SK. She found herself in a dire financial situation after unknowingly taking out a loan with an exorbitant interest rate of 40%. Confused by the loan terms when signing for the loan, Mrs. Smith felt embarrassed and overwhelmed by the circumstances, especially given her limited financial literacy. She turned to Spergel when she felt panicked and did not know where to turn next.

Client Background

Mrs. Smith lives on her own in her home in Saskatoon 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. Smith’s retirement income was limited. She recently faced unforeseen medical expenses, and also found that the rising cost of living in Saskatoon 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. Smith 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. Smith knew she needed professional help again, so turned to Spergel for support.

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The Challenge

The main challenge in Mrs. Smith’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. Smith’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. Smith 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. Smith 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. Smith’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. Smith to meet her financial obligations and cover all her essential living expenses.

Results

Our Licensed Insolvency Trustee helped to prepare and file Mrs. Smith’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. Smith 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. Smith 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. Smith.

Client Testimonial

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. Smith, Saskatoon, Saskatchewan

How Spergel can help you

At Spergel, the ‘get rid of debt’ people, our expert Licensed Insolvency Trustees have been helping Canadians to gain debt relief for over thirty years. We help individuals in various ways to improve your financial wellbeing. In this scenario, our approach focused on detailed spending tracking in order to budget and live within your means. Here are some ways we can help you:

  • Debt consolidation and management – making debt easier to handle and reducing overall interest payments.
  • Budgeting – we help to create realistic budgets and financial plans tailored to your needs.
  • Credit counselling – we offer guidance on improving and maintaining a healthy credit score. 
  • Debt relief – for any individuals facing significant financial challenges, we provide advice on your options including bankruptcy and consumer proposals, guiding you through the process and helping you make informed decisions.

By offering a range of services and expertise, we aim to empower individuals to gain financial freedom and to take control of their finances to build a more secure future.

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