Lorelle* is a woman in her 70s living alone on the Age Pension. She has no superannuation and lives with significant physical and mental health challenges, including PTSD related to childhood trauma and ongoing mobility issues resulting from a workplace accident many years ago. Socially isolated and with limited family support, Lorelle became increasingly distressed as she struggled to manage a mortgage that had become unaffordable.
Lorelle had been a customer of the same bank for more than 35 years and had refinanced and consolidated debts into her mortgage several times over that period. Although the remaining mortgage balance was approximately $161,000, multiple loan consolidations and rising interest rates had left her unable to meet repayments on her pension income. Due to her health issues, Lorelle had appointed a family member as her Power of Attorney, who had negotiated temporary hardship arrangements with the bank. However, these arrangements were due to end and Lorelle had been advised that her only remaining option was to sell her home. Lorelle had also accumulated $4,000 in defaulted credit card debt.
Concerned that she would be forced to leave the home she had lived in for many years, Lorelle sought support from financial counselling.
Uniting’s financial counsellor worked with Lorelle to understand her circumstances and advocate on her behalf. Moratorium and debt waiver requests were submitted to debt collectors, while discussions were held with legal services regarding her mortgage.
During the review of Lorelle’s lending history, concerns emerged that irresponsible lending may have occurred. The financial counsellor raised these concerns directly
with the bank and through ongoing advocacy and negotiation was able to secure a positive outcome that reflected Lorelle’s vulnerability and long-standing relationship with the bank.
As a result, the bank agreed to provide a permanent interest-free mortgage arrangement, reduce her minimum monthly repayments by $200, and apply a credit of $23,600 to her mortgage, reducing the principal balance from $161,000 to $137,000. In addition, her $4,000 credit card debt was waived on compassionate grounds. The financial counsellor also worked with Lorelle on budgeting strategies to help restore her financial stability and return her budget to a surplus position.
Lorelle was overwhelmed with relief and gratitude at the outcome. The support she received enabled her to remain in her home, significantly reduced her financial stress, and improved her sense of security and wellbeing. She is now able to look to the future with greater confidence, knowing she can afford to remain in the home she values so deeply.
*Name and image changed for privacy reasons.
