Debt Solution for Widow
Fourty-one-year-old widow, Mrs B lives in the picturesque village of Little Falls in Roodepoort, Gauteng with her two children. After the passing of her husband, Mrs B began to struggle to keep up with her financial obligations. She had just one source of income to rely on and, after a while, her debt commitments became unmanageable.
Mrs B earns a salary of R14,570 as a private nurse, while her monthly expenditure is R11,590. This leaves her with only R2,980 for debt repayment. Below is a table that outlines Mrs B’s income and expenses.
‘Mrs B could not afford to cover all of her debt repayments with only R2,980’
| Salary: | R14,570 |
| Expenses: | |
| Rent | R5,000 |
| Electricity | R300 |
| Cell phone | R100 |
| Vehicle insurance | R660 |
| Vehicle maintenance | R400 |
| Vehicle fuel | R800 |
| Clothing | R500 |
| Food & household goods | R2,000 |
| School fees | R700 |
| Life, health & critical illness insurance | R670 |
| Bank charges | R100 |
| Other 1 | R360 |
| TOTAL: | R11,590 |
| Left over for debt repayment: | R2,980 |
‘Mrs B fell into arrears and was at risk of losing her home and car.’
The next table lists Mrs B’s original monthly debt obligations. As we can see, Mrs B owed R7,500 in total on debt monthly. This put her in quite the predicament. She simply could not afford to cover all of her debt repayments with only R2,980, on top of her basic living expenses. As a result, she fell into arrears and was at risk of losing her home and car.
| Debt: | Original interest rate: | Original instalment: |
| Retail account | 20.00% | R363 |
| Loan | 31.35% | R1,946 |
| Clothing account | 22.65% | R275 |
| Overdraft | 17.00% | R1,354 |
| Credit card | 21.25% | R1,112 |
| Credit card | 18.75% | R686 |
| Revolving credit plan | 16,75% | R1,633 |
| Retail account | 22.65% | R131 |
| TOTAL: | R7,500 | |
| Over-indebted by: | R4,520 | |
‘National Debt Advisors negotiates with clients’ creditors for lower payments’
It’s a good thing Mrs B’s friend told her all about National Debt Advisors and how we help our clients out of financial trouble by negotiating with their creditors for lower instalments and interest rates.
This is exactly what the professional consultants at NDA did for Mrs B via a proven debt solution, namely debt review. Have a look at the table below to see how much Mrs B now spends on her monthly debt payments.
| Debt: | Restructured interest rate: | Restructured instalment: |
| Retail account | 0.00% | R143 |
| Loan | 1.27% | R620 |
| Clothing account | 1.08% | R124 |
| Overdraft | 1.28% | R538 |
| Credit card | 0.94% | R444 |
| Credit card | 1.04% | R232 |
| Revolving credit plan | 0.99% | R580 |
| Retail account | 1.08% | R89 |
| TOTAL: | R2,770 | |
| Amount saved monthly: | R4,730 | |
‘Mrs B is now saving as much as R4,730 every month thanks to NDA!’
As we can see from the above table, Mrs B is now saving as much as R4,730 every month thanks to NDA! She is only paying R2,770 in total monthly towards her debts now.
Mrs B’s finances are back on track and she can now afford to take care of her children properly, as well as pay off her debts. Plus, with the help of NDA, Mrs B is now well on her way to becoming completely debt free!
Mrs B is only one of thousands of people that NDA has assisted over the years. See our case studies section to read about some of our clients’ stories.
