Debt Solution for Bachelorette
Miss N is a 39-year old single bachelorette living in Hartbeespoort. She earns a monthly salary of R8735.
These days, credit is scarily accessible. It’s all too easy to fall into a devastating debt trap, but a nightmare to claw one’s way back out again. Unfortunately, this is what happened to Miss N when she upgraded her lifestyle using credit.
‘Miss N spends R7940 on just her basic needs’
But the good times did not last long. With the low salary she was earning, she simply could not afford to keep up with this extravagant lifestyle. Before long, she found that she could not afford her debt repayments, let alone her basic living expenses.
| Net income: | R8735.00 |
| Motor Finance | R 2,705 |
| Vehicle Maintenance | R1000.00 |
| Vehicle Fuel | R1000.00 |
| Vehicle Insurance | R600.00 |
| Food & Household Goods | R1485.00 |
| Life, Health & Critical Illness Insurance | R700.00 |
| Bank Charges | R250.00 |
| Cell Phone | R200.00 |
| Total expenses: | R7940 |
| Amount available for debt repayment: | R795 |
Miss N spends R7940 of the R8753 she earns just on her basic needs. After Miss N buys the basic supplies she needs on a monthly basis and pays her bills, she only has R795 left to pay towards debt.
‘Miss N owes R4334 per month in debt payments’
Sometimes, she can’t even afford to buy groceries after she makes her debt payments. That’s why she has fallen into arrears on many of her accounts. Now, she may lose her car or have her salary garnished.
Original Instalments and Interest Rates
| Debt: | Original Rate | Original Instalment |
| Credit card | 21.00% | R1330 |
| Credit card | 19.00% | R104 |
| Credit card | 19.00% | R282 |
| Gold cheque account | 21.00% | R 133 |
| Personal Loan | 21.00% | R1469 |
| Store card | 22.90% | R1016 |
| Total: | R4334 | |
Overall, Miss N owes R4334 per month in debt payments. This means she is over-indebted as she can’t afford her expenses and her debt payments at the same time. She still needs to find an extra R3539 monthly if she is to avoid legal action from her credit providers.
Debt Review Instalments and Interest Rates
| Debt: | Restructured Rate | Restructured Instalment |
| Credit card | 11.50% | R102 |
| Credit card | 2% | R79 |
| Credit card | 4.75% | R128 |
| Gold cheque account | 12.53% | R 138 |
| Personal loan4 | 12.10% | R 143 |
| Store card | 0.00% | R165 |
| Total Restructured instalment: | R755 | |
| Amount saved on debt repayments: | R3579 | |
As you can see from the table above, National Debt Advisors succeeded in getting Miss N’s total debt payment down to R755 from R4334! This saves Miss N R3759 monthly, which means she can afford her debt payments and her basic expenses with ease.
‘Debt review saves Miss N R3759 monthly’
This is all as a result of her entering debt review. This process also provided her with legal protection against her credit providers. Miss N no longer has to worry about her assets being repossessed or her salary being garnished! She can now sleep sound knowing she is well on her way to becoming debt free!
