Debt Solution for Prison Officer
Mrs W is a 52-year-old prison officer from King Williams Town, Eastern Cape. She is separated from her husband and has eight children to take care of. As the sole breadwinner, she became over-indebted after the cost of living rose sharply, due to the country’s poor economy.
‘Mrs W has many mouths to feed… tough financial times hit the family hard’
She was forced to take out credit cards and loans just so she could afford her basic living expenses, such as petrol, electricity, school fees, food etc. Mrs W has many mouths to feed and, as the household lives off only one source of income, tough financial times hit the family hard.
| Salary: | R18,000 |
| Expenses: | |
| Electricity | R500 |
| Cell phone | R68 |
| Vehicle insurance | R2932 |
| Vehicle fuel | R2000 |
| Food & household goods | R2000 |
| School fees | R1800 |
| Life, health & critical illness insurance | R4000 |
| Bank charges | R200 |
| TOTAL: | R13,500 |
| Available for debt repayment: | R4,500 |
‘Mrs W owed R12,456 towards her debts… but she could only afford to pay R4,500’
Mrs W earns a monthly salary of R18,000, while her basic monthly expenses add up to R13,500. This leaves her with R4,500 to pay towards her debts on a monthly basis. But, if we look at what she has available, compared to what she owes, we can see that she is deeply over-indebted.
| Debt: | Original interest rate: | Original instalment: |
| Personal loan | 20.00% | R3,429 |
| Clothing account | 26.00% | R805 |
| Loan | 28.50% | R879 |
| Unsecured credit | 26.90% | R5,657 |
| Unsecured credit | 29.50% | R339 |
| Unsecured credit | 28.10% | R1,347 |
| TOTAL: | R12,456 | |
| Over-indebted by: | R7,956 | |
The above table shows that Mrs W owed R12,456 towards her debts on a monthly basis, but she could only afford to pay R4,500. This means that she was short of R7,956 every month. Accordingly, she fell into arrears.
‘National Debt Advisors offered her immediate financial relief and legal protection.’
Credit providers were calling her relentlessly to demand payments and threatening to take legal action against her. Mrs W developed insomnia and she felt anxious and depressed all the time. As a result, her work performance suffered.
She needed a debt solution that would provide her with immediate financial relief and legal protection. National Debt Advisors offered her all of this and more through debt review.
| Debt: | Restructured interest rate: | Restructured instalment: |
| Personal loan | 0.59% | R1,002 |
| Clothing account | 0.66% | R139 |
| Loan | 0.69% | R93 |
| Unsecured credit | 0.70% | R1,774 |
| Unsecured credit | 26.90% | R47 |
| Unsecured credit | 0.69% | R399 |
| TOTAL: | R3,453 | |
| Saved on debt monthly: | R9003 | |
‘She now only pays R3,453 towards her debt in total… she is saving R9,003 every month!
The above table lists the interest rates and instalments that National Debt Advisors arranged for Mrs W via debt review. As you can see, she now only pays R3,453 towards her debt in total, which means she is saving R9,003 every month!
Subsequently, she can afford her basic expenses comfortably and is able to maintain a good standard of living for her family. She feels like a new person, as her stress simply melted away after National Debt Advisors helped her get back on track financially.
Read more about other clients we have assisted in our case studies section.
