Mr. X is a married 36 year old that works as a Sales Person. He is living in Boksburg East Rand, Johannesburg with his wife and one child.
“Mr. X takes home a net income of R34 000 a month.”
Even though Mr. X makes a decent living and is a homeowner, he has a little problem and is a compulsive gambler. From horses at the track to sports, scratch cards, roulette, poker, slots in a casino and online Mr. X could never get his gambling disorder under control.
Because he made such a good living; Mr. X and his wife never needed to think twice about spending money on themselves and their child. Mr. X and his wife were also over spending on entertainment and leisure and soon they could not afford to keep up with their debt repayments and fell into arrears.
It was at this point that they decided to seek help from National Debt Advisors and went under debt review. The table below is a table outlining what Mr. X and his wife spend on a monthly basis.
|Household Insurance||R2, 000|
|Vehicle Fuel||R1, 000|
|Food and Household Goods||R2, 500|
|School Fees||R1, 7000|
|Life Insurance||R3, 500|
|Vehicle Insurance||R2, 000|
Their total living expenses is R20, 500
“He is then left with R13 100.00 to pay off his debt.”
|Debt||Original Interest Rate||Original Installments|
|Personal Loan||14.2%||R1, 500.00|
|Bank Credit Card||13%||R808|
|Home Loan||10.69%||R14, 419.92|
|Credit Card||14.10%||R1, 053.34|
|Personal Loan||14.25%||R2, 435.00|
|Credit Card||14.25%||R1, 164.21|
Total monthly debt repayments: R28 793.13
“Mr. X owes R28 793.13 towards his debts on a monthly basis, but is only left with R13 100 after his monthly expenses are met.”
Because Mr. X made a good living, credit providers granted him more credit than he could afford. Once National Debt Advisors stepped in Mr. X’s credit providers accepted the below reduced rates and installments.
|Debt:||Interest Rate||Reduced Installments|
|Bank Credit Card||13%||R1, 213.40|
|Home Loan||5.33%||R11, 900.37|
|Personal Loan||0%||R1, 807.82|
|Credit Card||7.78%||R1, 290.15|
Total monthly debt repayments: R20 030.01
“We also reworked Mr. X’s household expenses to help save him money. Thanks to National Debt Advisors he can now afford to meet his monthly obligations, and save a lot on interest rates.”
Now that he has curbed his little problem, Mr. X is now also working on his gambling problem which will help him save even more money and pay off his debts faster.
Do you know someone who has a debt problem and is in need of debt relief? Learn more about the clients we have helped with different and similar issues in our case studies. Our tailor-made Debt solutions can help you breathe easier.