Well, in order to best answer that question, we would like to create a scenario that you can maybe relate to. One man (let’s call him Jim) is currently permanently employed and has been working for the same company for the last 3 years. Jim’s current salary is R15,800.00 a month, which he clears after tax.
Because Jim lives in an upmarket neighbourhood he had decided to buy himself a nice car a year ago, to the value of around R220,000.00. Yes, Jim felt great when the bank approved his car finance, as he now felt like he belonged in the neighbourhood.
Now, Jim thought to himself “before I can invite some of my neighbours and friends over for a braai, I’m going to need a big flat screen TV and some new couches.” So, Jim went down to his local electronics store, Dion Wired, and got himself a 55inch HD smart TV with a surround sound system –on credit of course.
He then also went to House & Home and took out finance for a new lounge suite and an outdoor table and chairs, which he will be paying off over 24 months. Jim also wanted to get in shape to impress the ladies, so he took out a gym membership.
Additonally, he went to Markham’s and took out a store account, so he could get a smart new wardrobe, including suits, shirts, shoes – the works. Naturally, he had to pay off all of these accounts monthly, with interest.
A Few Months Later…
It’s now a couple of months later and Jim has found himself in a position where his monthly debt repayments exceed his monthly income. Currently, he owes R14,000.00 a month on his monthly instalments, but is only earning R15,800.00. Because he cannot afford to buy groceries, petrol, transport and other essential bills with only R1,800.00, he’s fallen into arrears on all of his accounts.
Another expense that he did not think about was that his car would need to be serviced from time to time. He also didn’t think he would need to go see a dentist or doctor. Unfortunately, Jim found himself needing both. As a result, Jim owes a lot on medical bills too.
Jim is now over-indebted. He keeps applying for more credit, but his applications are all rejected. He’s currently two months in arrears on all of his accounts and credit providers are put off by this. He’s thinking of going to a loan shark, but he’s heard terrible things about them.
Jim Gets Help
Worse still, all of this is making Jim very depressed – he’s anxious all the time, can’t focus at work and struggles to sleep at night. But he doesn’t feel like he can tell anyone because he’s too ashamed.
If Jim doesn’t act now and try to do something about it, he may lose his car and furniture or have his salary garnished. NDA can assist Jim by reducing his monthly repayments by almost 50%, from R14,000.00 to R8,200.00 a month. This will allow Jim to make his monthly debt repayments, pay his bills and buy the essentials.
Can you relate to Jim’s story? If you are in a similar situation, we urge you to get in touch with us, so we can do the same for you. Have a chat with us – it’s completely confidential and our consultants are trained professionals who assist clients just like Jim every day.