Debt Solution for a Family of Three

In this debt solution case study, we will outline how we assisted our client, Mr Z to tackle a large amount of debt, even when he believed he was powerless to do anything about it. Mr Z is a 50-year-old married sales consultant, who supports a wife and daughter. He lives with his family in Bridgeton, Oudtshoorn and is a home owner.

 

‘Mr Z only had R4100 available monthly for debt repayment’

 

Net Income:R8,000
Expenses:
ElectricityR1000
Vehicle FuelR900
ClothingR300
Food & Household GoodsR1500
OtherR100
Bank ChargesR100
Total monthly expenditure:R3.900
Available for debt repayment:R4,100

 

‘He owed R10, 051 and thus lacked R5951 monthly’

 

Over a number of years, Mr Z incurred several debts and ultimately could not afford his repayments. Below is a list of his original interest rates and instalments.

 

Debt:Original Interest Rate:Original Instalment:
Finance32.65%R1241
Finance0.94%R958
Personal Loan5.00%R1607
Retail Account22.65%R538
Unsecured Credit29.20%R 1,100
Unsecured Credit28.10%R 765
Unsecured Credit31.00%R 3562
Store Card22.00%R280.00
Total owed monthly:R10,051
Lacking for debt repayment:R5951

 

From the above two tables, you can clearly see that Mr Z only had R4100 available monthly for debt repayment, after expenses. But he owed R10, 051 and thus lacked R5951 monthly. As follows, he could not meet his debt obligations.

Mr Z asked a friend who had been in a similar situation who she would recommend for a reliable debt solution for a family of three. His friend advised that Mr Z contact National Debt Advisors immediately, as they had helped her become debt free.

She praised the great service and how friendly and efficient the consultant had been. Consequently, Mr Z approached us for help, informing us that he could no longer afford his debt repayments. One of our consultants then advised him about debt review and its many benefits.

 

‘National Debt Advisors arranged for Mr Z to save R6815 monthly’

 

We then assessed his financial situation by obtaining his certificates of balance from all of his various credit providers. Then his debt counsellor negotiated with his creditors, demonstrating that Mr Z did not have the funds available to make his original monthly repayments.

 

We proposed that his lenders reduce his instalments and interest rates, and extend his repayment term. To Mr Z’s relief, his credit providers accepted our repayment proposal. Accordingly, he could afford his repayments and all of his living expenses! Below is a list of his restructured proposed instalments and interest rates.

 

‘He now only spends R3236 in total on debt repayments’

 

Debt:Restructured Interest Rates:Restructured Instalments:
Finance32.65%R156
Finance0.94%R69
Personal Loan0.00%R149
Retail Account22.65%R153
Unsecured Credit1.25%R 324
Unsecured Credit1.29%R308
Unsecured Credit1.29%R2017
Store Card1.09%R60
TOTAL restructured  debt repayment :R3236
Saved on debt repayment:R6815

 

‘He even has R864 extra every month’

 

Mr Z now saves R6815 every month on his instalments, as we had his total monthly debt repayment reduced to R3236 from R10,051. At first, he only had R4,100 to spare for debt repayment. Now, he even has R864 extra every month to save for unexpected expenses. Not to mention, he is also saving a lot on interest, as we had his rates lowered too.

 Have a look at our other case studies to see how we have helped people from all walks of life with their debt problems. If you find yourself in similar circumstances, please get in touch with National Debt Advisors and we may be able to assist you in the same way!