CASE STUDY: Debt Consolidation

Meet John, 70, from Gosford. Struggling to keep up with financial obligations, he felt that he was on a treadmill of coping month-to-month instead of enjoying the comfortable retirement lifestyle he had planned.

Happy grandfather and grandson
Reading time: 3 min

Since finishing work in 2022, John found himself struggling with multiple financial burdens. He had accumulated a large credit card debt and still owed $65,000 on his mortgage. While he had his pension and some superannuation savings he could draw on, managing the monthly repayments on the mortgage and the credit cards was becoming increasingly challenging.

John had long been searching for some relief. Thankfully, he found Inviva, who offered an ideal solution for his situation.

How Inviva helped

John decided to explore the option of a reverse mortgage, which allowed him to convert part of his home equity into cash without selling his house. After consulting with a financial advisor, he contacted Inviva and took out a loan of $180,000 secured against his home, which was valued at $860,000.

With the new loan John was able to consolidate his credit card debt and pay off the remaining $65,000 mortgage balance - thereby eliminating monthly mortgage and credit card repayments. This significantly reduced his financial stress and freed up his monthly cash flow.

The Inviva loan provided John with an additional amount of $95,000 which he took as a line of credit to be accessed as and when he needed it. Initially he travelled to visit his grandchildren in Perth and is currently planning a long-desired trip to the UK. Alongside this, he’s also seen to some minor home improvements (that have long been on his mind) to enhance his living environment.

“Taking out a reverse mortgage was a game-changer for me. It gave me the financial freedom to enjoy my retirement. Now, I can travel, visit my grandchildren, and live comfortably in my home without the stress of ongoing monthly repayments."
- John

This financial move has transformed John’s retirement, giving him the freedom to enjoy this time without the constant worry of monthly repayments - and all while staying in the family home in Gosford.  

In a few years, John plans to sell his home and downsize to a smaller unit or lifestyle village and aims to repay the loan with the proceeds at that time.  

*Names and some details have been changed to protect customer privacy

Save For Later

You May Also Like

Share this!