Page 12 - Singledebt

PDP case study 2 from Kolkata. (Stopped harassment, Negotiated a
Settlement for four credit cards with 70% to 50% discount) –
Trevor M. (Due to confidentiality, we have not provided their
photos, name or the name of their business.)

A 32-year-old postgraduate from Kolkata, married with two
children was struggling to pay his EMI, he had four credit
cards and one personal loan. He has a very good job with a
salary of ₹1,80,000 per month.
He is in rented accommodation with his family and elderly
parents, who with his wife became ill and due to their
medical expenses and care was struggling to service his
debts.

He had debts totalling ₹16,60,000 and was paying ₹50,920
EMI per month, but due to the medication and medical care
his monthly household expenditure increased to ₹1,51,000.

He had approached us to help him find a solution to his
current position. After our initial free counselling, we were
informed that he had some funds that he was expecting in
four months’ time, but the fund was not sufficient to repay
all his debts.

We worked out a settlement plan whereby we would
negotiate a settlement figure for all his credit cards which
had an outstanding of 10 lacs, and were charging him the
most interest, and in the meantime, he enrolled onto the
PDP.

He was also experiencing undue harassment and with the
help of our Advocates was able to subdue this and was able

to obtain 70% discount on the settlement from one of the
credit card creditors due to their harassment. With the
other credit cards, we were able to obtain 50% settlement
on the outstanding debts.
When he initially enrolled onto the PDP he was paying
₹25,000 per month, which were distributed to all the five
creditors and now after the settlement that amount is paid
towards the remaining one creditor