Increased debt when family is ill

How do you manage money effectively when family is ill and living costs are high?

THE STORY:

Cris has family in the Philippines. His Mother is getting old and has health problems. His Father  passed away and it was expected that Cris would pay for the funeral.
Cris also has his own family here - a wife and 3 children. Additionally Cris had been helping with his mother's health costs, and sending money to his wife's parents and family overseas.
Cris's car broke down and he borrowed money for a more reliable vehicle.

Cris earns $900 per week and his wife earns $780 per week.  They are also entitled to a Family Tax benefit averaging $140 per week. Total income $1820 per week

THE PROBLEM:

Cris now owes $45,000 on his car. He has 8 Credit Cards and a personal loan which total  $90,000. Additionally he could not meet his repayments and so has borrowed another $6000, taking out 3 different short term, high interest loans over a short period of time. The upward spiraling debt meant that Cris could no longer afford to make payments and his debts have gone to collections.

THE MONEY:

Family wages per week $1820
Costs per week
Rent and living costs for family of 5 with 2 cars and child care $1170
Personal loans and credit card minimum payment $623
Short term loans $230
Car payment $270
Cris's Total Costs $2293

The Family is behind $473 per week = over $2000 per month and growing

If Cris didn't move quickly, his debts would have quickly exceeded what is allowed to be put in a debt agreement.

THE SOLUTION:

Fast Debt Help assisted Cris with a 5 year Debt Agreement to repay his unsecured debts at $322 per week.

Family wages per week $1820
Costs per week
Rent and living costs for family of 5 with 2 cars and child care $1170
Fast Debt Help were able to obtain a Debt Agreement for Cris' Credit Cards, Personal loans and short term loans - a SAVING of $531 per week! $322
Car payment $270
Cassie's Total Costs $1762

Cris and his Family now have a surplus of $58 per week -
they well on their way to getting out of debt and claiming a brighter future.

Additionally because Cris and his wife are paid fortnightly, Fast Debt Help arranged for the payments to come out as a fortnightly direct debit payment.

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