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Debt Solution for Married Couple

Mrs S works as a cleaner at the police station and rents an apartment with her husband, Mr S in Pretoria. The married couple fell upon hard financial times when they took on more debt than they could afford.

Mr and Mrs S are married in community of property, so they made a joint application for debt review with National Debt Advisors. Below is a table that sets out their income and expenses.

‘The married couple fell upon hard financial times when they took on more debt than they could afford.’

 

 Income:
Salary 1 R8,800
Salary 2 R4,500
 TOTAL:  R13,300
 Expenses:
Rent R2,500
Electricity R100
Vehicle insurance R600
TV license R250
Food & household goods R2,000
Life, health & critical illness insurance R600
Bank charges R100
Mobile phone R662
Travel expenses R1,000
 TOTAL:  R7,812
 Available for debt repayment:  R5,488

 

‘They could not afford their debt repayments, on top of their essential expenses’

As you can see from the above table, Mr and Mrs S’s expenses add up to R7,812. As their total household income is R13,300, this means they were left with R5,488 for debt repayment after expenses.

The below table sets out what Mr and Mrs S owed towards their debts on a monthly basis before they entered debt review.

 

Debt Interest rate Instalment
Clothing account 22.65% R730
Credit card 18.50% R975
Credit card 18.00% R 1,978
Personal loan 14.50% R1,827
Car finance 14.00% R2,409
 TOTAL:  R7,919
 Over-indebted by:  R2,431

 

‘Entering debt review with National Debt Advisors was the best decision Mr and Mrs S ever made.’

As we compare what Mr and Mrs S earn to the R7,919 they owed monthly, a troubling picture emerges. Clearly, they could not afford their debt repayments, on top of their essential expenses. This is why entering debt review with National Debt Advisors was the best decision Mr and Mrs S could’ve ever made.

 

Debt Interest rate Instalment
Clothing account 22.65% R300
Credit card 18.50% R793
Credit card 16.24% R531
Personal loan 0.28% R679
Car finance 14.00% R2,293
 TOTAL:  R4,596
 Amount saved monthly:  R3,323

 

‘They now only owe R4,596 monthly on debt repayments, which means they are saving R3,323 every month’

The above table looks a lot more promising! It shows the new low interest rates and instalments that Mr and Mrs S’s debt counsellor at National Debt Advisors arranged for them with their creditors. As a result, the married couple are able to afford their monthly expenses and debt repayments with ease.

They now only owe R4,596 monthly on debt repayments, which means they are saving R3,323 every month thanks to NDA. Moreover, NDA also arranged for their interest rates to be reduced, which means they will save a lot of money on interest too. Better yet, they won’t have to worry about law suits or car repossession due to non-payment of debts. What a relief!

Check out our other case studies to read about how NDA has helped other clients achieve financial freedom.

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