Debt Solution for Single Mom

This debt solution case study describes how we helped our client to ensure that her assets were not repossessed. Mrs X, a 42-year-old single mother from Nelspruit, Mpumalanga approached NDA for help, as she was struggling to keep up with her debt repayments.

 

‘42-year-old single mom saves R4784 monthly!’

 

She was fearful that her home and car would be taken away from her. She had a young son and had no idea what to do. One of NDA’s debt counsellors spoke to Mrs X to get a thorough understanding of her situation and then suggested a suitable debt solution.

 

‘NDA helped her avoid losing her home and car’

 

The first step Mrs X’s debt counsellor took was to look at her current household budget and draw up a new more affordable budget for her, saving Mrs X R4784 every month!

Budget drawn up by NDA:

Net income:R11, 219
Living Expenses:
ElectricityR500
Rates & taxesR300
TransportR800
CellphoneR150
Food & household goodsR2000
School feesR583
Bank chargesR99
Amount available for debt repayments:R6787

 

Debt Obligations:Annual Interest rate:Instalment:
Personal Loan27.00%R 1285
Retail Account22.65 %R260
Vehicle Finance60.00%R1619
Credit Card21.00%R249
Credit Card15.66%R736
Bank Loan26.00%R3116
Home Loan9.25%R3580
Amount owed on monthly debt repayments:R10845

 

Mrs X only had R6787 available to service her debts monthly, but she owed R10845 per month. This meant she was over-indebted, as her expenses far exceeded her income. NDA then processed her debt counseling application, proposing lower monthly instalments and interest rates. We then submitted the application to court for approval.

 

‘Mrs. X owed R10845 but only had R6787 available’

 

Mrs X’s credit providers accepted the below reduced rates and instalments:

Debt Obligations:Annual Interest rate:Instalment:
Personal Loan7.5%R802
Retail Account22.65%R77
Vehicle Finance5.44%R935
Credit Card2.89%R60
Credit Card1.2%R576
Bank Loan3.22%R 746
Home Loan8.5%R2865
Amount owed on debt repayments:R6061

 

‘She is now paying lower instalments and interest rates’

 

How did debt review benefit Mrs X and her son?

  • Legal protection from time of application
  • Pays fixed monthly instalments
  • No more harassing calls from creditors
  • No blacklisting at the credit bureaus