Local Hero Tackles Debt of a Nation

Becoming a property investor when you're up to your ears in thousands of dollars of debt may seem impossible to some, but thanks to a go-getter from Perth, hundreds of Australians have made it a reality.

After qualifying as a finance broker, 25-year-old Scott Parry launched his mortgage and debt management business, Crown Lending, in 2002. From a staff of one in a poky Subiaco office, the business has expanded to Victoria, New South Wales, Queensland, South Australia and Canberra, employing 11 people.

"Banks tend to treat their customers as just a number," says Parry. "The aim with Crown Lending has always been to provide a one-on-one service that helps people not only with their mortgages, but with their money management in general."

"We've been lucky enough to help people from all walks of life. Young families, baby boomers preparing for retirement and even shopaholics," he adds.

The Family
With a mortgage, a personal loan, credit card debt, three store cards to pay off, a large sum of money owed to family members and their baby daughter to look after, Michael Barnes and his partner Heather knew they were in trouble.

"We were skeptical about debt consolidation at first, but once we'd sat down with them and found out that we could actually reduce our monthly repayments by combining all of our loans, we decided to give it a go," says Barnes.

By consolidating their debts, the family have reduced their monthly repayments by $800 and managed to slash $13,000 off their home loan in just 12 months.

"The extra equity we've built up in our home has meant we've finally been able finish off some home improvement projects," Barnes adds. "Last year we bought our first investment property and we're now making plans for a much brighter financial future."

The Shopaholic
Self-confessed shopaholic Kylie Kersten loves shoes, clothes, handbags - and had once had the credit card balances to prove it.

"We had a mortgage, a personal loan, buy-now-pay-later worries and $20,000 of debt across three credit cards," says Kersten. "We could manage to cover the bills and pay off the interest on what we'd borrowed, but we could never get ahead. When things went wrong - for example when the hot water system broke down, we had to borrow the money for repairs from our parents.

That was six months ago.

After consolidating their debts, their monthly repayments have been slashed by $500, they've cleared their massive credit card debt, and have paid more than $13,000 off their mortgage in 6 months.

"Best of all, I can actually afford to buy clothes and shoes now, as our money is working for us, rather than just going towards making our monthly repayments," She adds.

The Baby Boomer
Ian Barfe was approaching his 50th birthday with trepidation. With a mortgage and mounting credit card debt, he couldn't escape the feeling that he had nothing to show for his years of work.

Working offshore as a chef, Ian was able to bring a good income home to his wife Warunee and their two teenage children, but he felt as though their money wasn't being used effectively.

"I was lying in bed one night and decided something had to change before I reached 50," says Barfe.

The Barfes have since slashed $25,000 from the mortgage for their Kingsley home. They have purchased two investment properties in WA and two plots of land in Thailand.

"We have been able to afford major renovations at our own house, we landscaped the garden, upgraded the car and have just finished building a house on one of our blocks in Thailand," adds Barfe.