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.
