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Debt Solution for Truck Driver

Mr J is a 43-year-old truck driver from Krugersdorp, Gauteng. He is married with three children and the sole breadwinner of his family. Whenever he does not earn overtime, Mr J struggles to afford his basic expenses. Accordingly, he took out loans, credit cards and an overdraft just so he could afford to take care of his family.

As a result, Mr J was drowning in debt, with no foreseeable hope in sight.

Below is a table that lays out what Mr J earns and what he spends on the basic essentials every month. Mr J earns an income of R19,000, while his total monthly expenditure is R12,350. This leaves him with R6,650 for debt repayment.

‘Mr J owed a whopping R27,155 on debt monthly!’

 

Salary: R19,000
Expenses:  
Electricity R1,600
Cell phone R750
Food & household goods R3,200
School fees R2,750
Life, health & critical illness insurance R2,500
Bank charges R1,500
TV License R50
TOTAL: R12,350
Left over for debt repayment: R6,650

 

‘Now, let’s have a look at his debt situation – set out in the table below.’

Debt: Original interest rate: Original instalment:
Loan 31.00% R766
Personal Loan 27.00% R1,817
Clothing account 23.75% R1,000
Credit card 0.00% R530
Bank overdraft 18.90% R4,307
Credit card 13.25% R9,864
Home loan 10.20% R8,369
Current account 0.00% R502
TOTAL: R27,155
Over-indebted by: R20,505

 

‘On a monthly basis, Mr J is saving an incredible R20,575!’

Mr J owed a whopping R27,155 on debt monthly! This was a big problem because he could only afford to spend R6,650 on debt each month, which means he was over-indebted by R20,505. Clearly, Mr J needed help desperately and that’s when National Debt Advisors came into the picture.

After assessing his finances, one of our qualified debt counsellors ascertained that Mr J was deeply over-indebted. This meant that he qualified for debt review – a debt solution that involves consolidating one’s repayments and reducing the overall amount paid towards debt monthly.

Below is a table that shows the reduced interest rates and instalments that NDA arranged for Mr J, so he could afford his repayments and his basic essentials without struggling.

‘After Mr J entered debt review, creditors could not take legal action.’

 

Debt: Restructured interest rate: Restructured instalment:
Loan 0.00% R135
Personal Loan 0.00% R306
Clothing account 23.75% R325
Credit card 0.00% R93
Bank overdraft 9.50% R451
Credit card 10.50% R739
Home loan 10.20% R4,371
Current account 0.00% R160
TOTAL: R6,580
Amount saved monthly: R20,575

 

‘NDA organised a more affordable repayment plan for Mr J.’

What this table shows is that NDA arranged for Mr J’s total monthly debt repayment to be reduced from R27,155 to R6,580! This means that on a monthly basis Mr J is saving an incredible R20,575! Mr J is very lucky that his home and car weren’t repossessed too. After Mr J entered debt review, his creditors were not allowed to take legal action against him for up to 60 days. During this time, NDA organised a more affordable repayment plan for Mr J, and all was right with the world again!

To find out how we’ve improved the lives of so many other clients, have a look at our case studies section.

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